Cobra Company sells appliance service contracts agreeing to repair appliances for a three-year period. The past...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Cobra Company sells appliance service contracts agreeing to repair appliances for a three-year period. The past experience is that the total amount spent for repairs on service contracts, 40% is incurred evenly during the first contract year, 25% is incurred evenly during the second contract year and 35% is incurred evenly during the 3rd contract year. Receipts from service contract sales are P500,000 for 2020 and P600,000 for 2021. How much is the balance of unearned revenue pertaining to 2020 sales as of December 31, 2021? Multiple Company provided the following information on December 31, 2020: Accounts payable after deducting debit balances in supplier's accounts of P100,000 Accrued liabilities Note payable - due March 31, 2021 Note payable - due May 31, 2023 Note payable - due December 31, 2022 P500,000 How much is the total current liabilities as of December 31, 2020? 950,000 P1,000,000 P800,000 P2,000,000 On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note for the same amount. During November 1, 2020, the Company breached a covenant pertaining to the May 31, 2023 note, making it due and demandable. On December 24. 2020, the creditor agreed to not to demand payment for 13 months from the date of breach. The note payable maturing on December 31, 2022, which was acquired on June 30, 2018. The creditor has the right to call the note 36 months from issuance Cobra Company sells appliance service contracts agreeing to repair appliances for a three-year period. The past experience is that the total amount spent for repairs on service contracts, 40% is incurred evenly during the first contract year, 25% is incurred evenly during the second contract year and 35% is incurred evenly during the 3rd contract year. Receipts from service contract sales are P500,000 for 2020 and P600,000 for 2021. How much is the balance of unearned revenue pertaining to 2020 sales as of December 31, 2021? Multiple Company provided the following information on December 31, 2020: Accounts payable after deducting debit balances in supplier's accounts of P100,000 Accrued liabilities Note payable - due March 31, 2021 Note payable - due May 31, 2023 Note payable - due December 31, 2022 P500,000 How much is the total current liabilities as of December 31, 2020? 950,000 P1,000,000 P800,000 P2,000,000 On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note for the same amount. During November 1, 2020, the Company breached a covenant pertaining to the May 31, 2023 note, making it due and demandable. On December 24. 2020, the creditor agreed to not to demand payment for 13 months from the date of breach. The note payable maturing on December 31, 2022, which was acquired on June 30, 2018. The creditor has the right to call the note 36 months from issuance
Expert Answer:
Answer rating: 100% (QA)
1 Determine the balance of unearned revenue pertaining to 2020 sales as of December 31 2021 In 2020 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260193275
12th Canadian Edition
Authors: Ray H. Garrison, Alan Webb, Theresa Libby
Posted Date:
Students also viewed these accounting questions
-
Cobb Company sells appliance service contracts to repair appliances for a two-year period. Cobb's past experience is that, of the total amount spent for repairs on service contracts, 40% is incurred...
-
Applying Gaussian elimination with and without partial pivoting and 4 digit floating point arithmetic, solve the following system and compare the results. (1.5+1.5) Show all the intermediate...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
Solve for y' y' = y = 71-x 3
-
Fifteen years ago the Acme Manufacturing Company bought a propane-powered forklift truck for $4800. The company depreciated the forklift using straight line depreciation , a 12-year life, and zero...
-
Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of capacity. a. What level of sales could Walter Industries have...
-
Sigma Security, Inc., began the year with $15,000 of common stock and $32,000 of retained earnings. On May 5, investors bought $12,000 of additional stock in the business. On August 22, the business...
-
Dandy Hardware Stores reported the following asset values in 2010 and 2011: In addition, Dandy Hardware had sales of $3,500,000 in 2011. Cost of goods sold for the year was $2,200,000. Compute Dandy...
-
What are the emerging trends and challenges in the field of structural engineering, particularly in the context of designing resilient and adaptive structures capable of withstanding extreme...
-
Using the factory energy cost data in Exhibit 11.11, find the best moving average and exponential smoothing models. Compare their forecasting ability with the regression model developed in the...
-
Scenic Gondola Inc. ( SGI ) purchased a large tract of land in the Okanagan Valley for development as a one stop tourist destination with a 3 0 0 metre sightseeing Gondola. To fund this purchase. SGI...
-
Describe the significance of the Orr decision.
-
Distinguish between alimony and property division.
-
Keurig Green Mountain is a specialty coffee company. It sources, makes, and sells coffee, hot cocoa, teas, and other beverages under various brands in portion packs for its Keurig brewing system. The...
-
Describe the nature and purpose of permanent alimony.
-
Describe lump-sum or alimony in gross. How is it different from other forms of alimony in its nature and effect?
-
On 1 July 2022, the opening balance of the Allowance for Doubtful Debts account of Jet Star Ltd was a credit of $1960. The business is registered for GST. On 31 July 2022 Jet Star received 50% of the...
-
Assessing simultaneous changes in CVP relationships Braun Corporation sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. Braun incurs $240,000 of fixed operating...
-
As part of the control system, why are budget results compared to actual results?
-
What is the break-even point in dollar sales? Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500...
-
FitPlus is a regional chain of health clubs. Each club's manager has the authority to make investments as needed and is evaluated based largely on ROI. FitPlus Club 52 reported the following results...
-
Can we use the numerical integration methods discussed in this chapter to solve nonlinear vibration problems?
-
Houbolt method a. Assumes that acceleration varies linearly between \(t_{i}\) and \(t_{i}+\theta \Delta t ; \theta \geq 1\) b. Assumes that acceleration varies linearly between \(t_{i}\) and...
-
Express the following \(n\) th-order differential equation as a system of \(n\) first-order differential equations: \[a_{n} \frac{d^{n} x}{d t^{n}}+a_{n-1} \frac{d^{n-1} x}{d t^{n-1}}+\cdots+a_{1}...
Study smarter with the SolutionInn App