Fill Ot Sigh Co Question 2 (15 marks) Below are selected transactions of Blueberry Ltd, a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fill Ot Sigh Co Question 2 (15 marks) Below are selected transactions of Blueberry Ltd, a public company, for 2020: 1. On January 1, 2020, the company sold $250,000 of products, all of which carried a two-year warranty (included in the price). If the two-year warranty was sold separately, it was estimated that 6% of the selling price represented the warranty portion. Actual warranty costs were $2,100 in Year 4. 60% of the revenue would be earned in the first year and the balance being recognized in the second year. The company uses service-type warranty (revenue-based). 2. On May 10, the company purchased goods from Jay Corp. for $30,000, terms 2/15, net 30. Blueberry uses the periodic inventory system. The invoice was paid on May 22. 3. On June 1, the company purchased equipment for $90,000 from Sparrow Ltd., paying $30,000 in cash and issuing a one-year, 7% note for the balance. 4. On October 1, the company borrowed money from the Third Bank by signing a one year, zero-interest-bearing note for $90,000. The market rate for a similar note is 7% 400PM 3. On June 1, the company purchased equipment for $90,000 from Sparrow Ltd., paying $30,000 in cash and issuing a one-year, 7% note for the balance. 4. On October 1, the company borrowed money from the Third Bank by signing a one year, zero-interest-bearing note for $90,000. The market rate for a similar note is 7%. 5. On November 1, Blueberry purchased new furniture for $20,000 on account. The furniture has a useful life of 10 years and the company uses straight-line depreciation. Required: (a) Prepare the journal entries necessary to record the transactions above using appropriate dates. (9 marks) (b) Prepare the adjusting entries necessary at year end, December 31, Year 4 related to the above transactions. Round to the nearest dollar. (6 marks) Show ALL calculations and write out account names for full marks. Fill Ot Sigh Co Question 2 (15 marks) Below are selected transactions of Blueberry Ltd, a public company, for 2020: 1. On January 1, 2020, the company sold $250,000 of products, all of which carried a two-year warranty (included in the price). If the two-year warranty was sold separately, it was estimated that 6% of the selling price represented the warranty portion. Actual warranty costs were $2,100 in Year 4. 60% of the revenue would be earned in the first year and the balance being recognized in the second year. The company uses service-type warranty (revenue-based). 2. On May 10, the company purchased goods from Jay Corp. for $30,000, terms 2/15, net 30. Blueberry uses the periodic inventory system. The invoice was paid on May 22. 3. On June 1, the company purchased equipment for $90,000 from Sparrow Ltd., paying $30,000 in cash and issuing a one-year, 7% note for the balance. 4. On October 1, the company borrowed money from the Third Bank by signing a one year, zero-interest-bearing note for $90,000. The market rate for a similar note is 7% 400PM 3. On June 1, the company purchased equipment for $90,000 from Sparrow Ltd., paying $30,000 in cash and issuing a one-year, 7% note for the balance. 4. On October 1, the company borrowed money from the Third Bank by signing a one year, zero-interest-bearing note for $90,000. The market rate for a similar note is 7%. 5. On November 1, Blueberry purchased new furniture for $20,000 on account. The furniture has a useful life of 10 years and the company uses straight-line depreciation. Required: (a) Prepare the journal entries necessary to record the transactions above using appropriate dates. (9 marks) (b) Prepare the adjusting entries necessary at year end, December 31, Year 4 related to the above transactions. Round to the nearest dollar. (6 marks) Show ALL calculations and write out account names for full marks.
Expert Answer:
Answer rating: 100% (QA)
Journal Entries in Lemonade Ltd SNo Date 1 2 3 4 5 1 2 3 4 01012020 5 10052020 22052020 01062020 011... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Below are selected transactions of Lemonade Ltd, a public company, for 2020: 1. On January 1, 2020, the company sold $250,000 of products, all of which carried a two-year warranty (included in the...
-
The easiest form of business organization to start and stop is the: O limited liability company. O sole proprietorship. O corporation. O partnership.
-
Presented below are selected transactions of Pale Force Company. Pale Force sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise...
-
Many auditors consider the substantiation of the figure for inventory to be a more difficult and challenging task than the verification of most other items on the balance sheet. List several specific...
-
In reviewing your research results, you find you have a revenue ruling that clearly states your taxpayer cannot do what he wants to do. However, you also found a case (although with no jurisdiction...
-
The manager at a local university bookstore wishes to apply the EOQ model to determine the respective order quantities for two products: ballpoint pens and mechanical pencils. The annual demand for...
-
Water is boiled in a polished stainless steel pot with a \(3 \mathrm{~kW}\) heater. The efficiency of the heater is \(60 \%\), i.e., only \(60 \%\) of the heat is transferred to the water. Find the...
-
Alpha Products, Inc., is having a problem trying to control inventory. There is insufi cient time to devote to all its items equally. Here is a sample of some items stocked, along with the annual...
-
1. The deformation gradient, denoted F, is computed from a finite element analysis of a complex forging process. At a critical location, it is found to have the components (with respect to a RHON...
-
Automotive Interiors (AI) manufactures seats for automobiles, vans, trucks, and boats. The company has a number of plants, including the Woodstock Cover Plant, which makes seat covers. Bill Rice is...
-
Using the pages below, complete the following using full sentences, expanding your answers and including examples to show your full understanding. Section 2.2 Similarities in Marketing...
-
1. How could a school's comprehensive counseling program be used to provide services to make school more gender inclusive? 2. How does Austism spectrum disorder affect a student in the classroom? How...
-
How do you leverage diverse skill sets and perspectives within a team to foster innovative problem-solving and drive impactful outcomes?
-
According to the development of attachment, at which age is an adopted child LEAST likely to have difficulties forming a secure attachment to an adoptive caregiver? Group of answer choices Adopted...
-
2. Galadriel Company began operations on 1/1/22 and produces tumbling mats and rebound mats for gymnastics. Both products are manufactured from a joint process. The company uses a Product Costing...
-
How do you navigate the challenges of remote collaboration and virtual teamwork, ensuring effective coordination and cohesion despite geographical dispersion?
-
1. (4 Points) A firm has debt, equity and preferred stocks. Assume the Modigliani Miller assumptions hold true and there is no taxation. Use the following data: Required Returns Weights Debt RD = 10%...
-
Consider the activities undertaken by a medical clinic in your area. Required 1. Do you consider a job order cost accounting system appropriate for the clinic? 2. Identify as many factors as possible...
-
Arrow Products is a mail-order computer software sales outlet. Most of Arrow's customers call on its toll-free phone line and order software, paying with a credit card. Required: Explain why the...
-
Augusta Inc. acquired 100% of the outstanding common stock of Dear Corporation in a business combination. Immediately before the business combination, the two businesses had the following balance...
-
Listed below are items that may appear on a classified balance sheet. 1. Land 2. Amounts due from customers 3. Office building 4. Truck 5. Goods held for resale 6. Amounts owed to others 7. Patent 8....
-
From the following figures, compile accounts receivable ledger and accounts payable ledger control accounts for the month, and ascertain what the net balances of the respective ledgers should be on...
-
Why may some people consider this to be incorrect? That is, why is the fact that the control account is kept in the General Ledger not enough to justify saying that the control account is part of the...
-
The financial year of The Better Trading Company ended on 30 November 2014. You have been asked to prepare a Total Accounts Receivable Account and a Total Accounts Payable Account in order to produce...
Study smarter with the SolutionInn App