Question: On December 3 1 , 2 0 1 5 , Aladin Company sells production to Tolbert Inc. for $ 7 6 , 0 0 0

On December 31,2015, Aladin Company sells production to Tolbert Inc. for $76,000. Aladin includes a 2-year warranty service with the sale of all its equipment. The customer receives and pays for the equipment on December 31,2015. Aladin estimates the prices to be $68,800 for the equipment and $7,200 for the warranty.
Instruction
a) Prepare journal entry to record this transaction on December 31,2015.
b) Indicate how much (if any) revenue should be recognized on January 31,2016, and for the year 2016.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

On December 31, Year 4, RAV Company purchased 60% of the outstanding common shares of ENS Company for $1,260,000. On that date, ENS had common shares of $500,000 and retained earnings of $130,000. In...

Q:

Question 2 ( 3 2 marks ) Enes Inc. is the main manufacturer of multicolour headbands in Western Jamaica. The following budgeted data relates to Enes Inc. for two periods: December 3 1 , 2 0 2 2 and...

Q:

The following Statement of Financial Position contains errors in format, terminology, classification, and numbers. It has been prepared by the bookkeeper for Hathaway Corporation. Hathaway follows...

Q:

EN - IN On December 3 1 , 2 0 2 3 , Cheyenne Inc., a public company, borrowed $ 3 million at 1 1 % payable annually to finance the construction of a new building. In 2 0 2 4 , the company made the...

Q:

Current Attempt in Progress Coronado Inc which follows IFRS had the following events during the year ended December 3 1 2 0 2 3 Coronado has an income tax rate of 3 0 Coronado has investments that...

Q:

Swifty Inc. had net income for the current year ending December 3 1 , 2 0 2 3 of $ 9 2 1 , 1 5 0 . During the entire year, there were 5 0 1 , 0 0 0 common shares outstanding. The company had two...

Q:

Waterway Company borrows $40,800 on July 1 from the bank by signing a $40,800, 12%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal...

Q:

NAME_______________________________________ OIM410 Business Process Optimization Fall 2015, Exam 2, 100 points You are to work on this exam independently. This exam has 4 questions on 4 pages. Answer...

Q:

PROBLEM #2 Instructions Chart of Accounts Starting Questions Journal Instructions Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials...

Q:

help please Question 29 11:25 points) 1 3 8 On January 1, 2012. $1,000,000, 10 year, 10% bonds, were issued for $1.000.000 Interest is paid annually on January 1. If the issuing corporation uses the...

Q:

need help with the last bit please Non P5-6 (Preparation of a Statement of Cash Flows and a Balance Sheet) Lansbury Inc. had the balance sheet shown on the following page at December 31, 2020. 5 6 7...

Q:

Sunshine Icon Berhad currently pays no dividend and reinvests all of its earnings into rapid growth. However, ABC is expected to begin paying dividends in 3 years. The first dividend will be RM 3.00;...

Q:

What is the maximum that should be invested in a 5-year project at time zero if the inflows are estimated at $0 annually for the first two years,$55,000 annually for the next 3 years, and the cost of...

Q:

Of all rectangles with a perimeter of 2 8 , which one has the maximum area? Question content area bottom Part 1 If x and y are the length and width of the rectangle, respectively, then the area of...

Q:

How much time do you spend on your relationship with God?

Q:

How might what you find most important be used to strengthen your relationship with God?

Q:

2. Using the gradient, find the equation of a tangent plane to the surface = f(x, y) V 10+ x2 5y2 = Z at the point (2, 1, 9).

Q:

6. Use the Stokes Theorem to evaluate the surface integral fs S(V x F) ndS, where F(x, y, z) = (e, 4z z = 4 x2 y above the xy-plane. Y, 8x sin y) and where S is the portion of the paraboloid

Q:

3. Find the absolute maximum and minimum values of f(x, y) = 4xy? xy y on the rectangle, R, with vertices (1, 1), (4, 1), (1, 3), and (4, 3).

Q:

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

Q:

Labor fringe benefits and similar costs associated with the direct labor may be considered part of direct labor or part of manufacturing overhead. What are the justifications for each alternative...

Q:

What are the normal costs of a product?

Q:

Assigning Costs to Jobs: The following transactions occurred at the March Production Company, a job order custom manufacturer: 1. Purchased $40,000 in materials. 2. Issued $2,000 in supplies from the...