Question 1: Green Air enters into a contract with a customer to supply furniture on 31...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1: Green Air enters into a contract with a customer to supply furniture on 31 December 2021. Control of the furniture transfers to the customer on that date. The price stated in the contract is $650,000 and is due for payment on 31 December 2024. Market rates of interest available to this particular customer are 10%. Required: Explain how this transaction should be accounted for in the financial statements of Green Air for the year ended 31 December 2021 and 2022 Question 1: Green Air enters into a contract with a customer to supply furniture on 31 December 2021. Control of the furniture transfers to the customer on that date. The price stated in the contract is $650,000 and is due for payment on 31 December 2024. Market rates of interest available to this particular customer are 10%. Required: Explain how this transaction should be accounted for in the financial statements of Green Air for the year ended 31 December 2021 and 2022
Expert Answer:
Answer rating: 100% (QA)
Date Account Dr Cr 20211231 Accounts Receivable 650000 Sales 650000 Being Goods Sol... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
Sycamore enters into a contract with a customer to sell three products for a total transaction price of $ 15,000. Each product is appropriately classified as a separate performance obligation....
-
On January 2, 2017, TI enters into a contract with Drewry Corp. to build a new piece of equipment. The contract price is $ 3 million, and construction is expected to take 18 months. Drewry is billed...
-
Nair Corp. enters into a contract with a customer to build an apartment building for $1,000,000. The customer hopes to rent apartments at the beginning of the school year and provides a performance...
-
Consider the plane stress inhomogeneous case with only variation in elastic modulus given by E = E(y) = 1/ (Ay + B). Further assume that the Airy function depends only on y, = (y). Show that...
-
How could third parties (i.e., neither debtors nor creditors) be guilty of bankruptcy fraud?
-
Two blocks A and B, each having a mass of 6 kg, are connected by the linkage shown. If the coefficients of static friction at the contacting surfaces are B = 0.8 and A = 0.2, determine the largest...
-
What happens to the probability that a particular person works when the wage rises? Does such a wage increase generate an income effect?
-
Indicate whether the following costs of Colgate-Palmolive Company would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Wages paid to Packaging Department...
-
Suppose that a person has an average heart rate of 62.0 beats/min. How many beats does he or she have in 1.0 y? Incorrect not valid decimal or scientific notation. In 1.00 y?
-
Oakridge Leasing Corporation signs an agreement on January 1, 2020, to lease equipment to LeBlanc Limited. Oakridge and LeBlanc follow ASPE. The following information relates to the agreement. 1. The...
-
1. Use the table above to compute for the GDP using the different approaches: a. Expenditure Approach (5 points) b. Gross Value-Added Approach (5 points) 2. Compute for the GDP per capita (3 points)...
-
1. How many different binary trees can be made from three nodes that contain the key values 1, 2, and 3? 2. How many different binary search trees can be made from three nodes that contain the key...
-
Repeat Exercise 12, using the S S chart in place of the R R chart. Data From Exercise 12: Copper wires are coated with a thin plastic coating. Samples of four wires are taken every hour, and the...
-
Which of these formulas gives the maximum number of nodes in the Nth level of a binary tree? 1. N N 2.2 N+1 3.2 N 4.2 - 1
-
Using the adjacency matrix for EmployeeGraph from Exercise 12, describe the path from Susan to Lance 1. using a breadth- first strategy. 2. using a depth-first strategy. Exercise 12 Extend the class...
-
1 2 4 5 7 3 6 8 is a traversal of the tree in which order? The numbers on the nodes are labels so that we can talk about the nodes; they are not key values within the nodes. 4 2 5 1 9 3 8
-
Creating such a communication filter is important to any organization if the leaders are going to be able to make well-informed decisions. Greg and Gene organized an initial response and, in turn,...
-
What is taxable income, and what is the formula for determining taxable income?
-
A list of cash receipts and cash payments for Mexis Communications is presented below. Classify each amount as operating, investing, or financing, assuming that Mexis Communications reports under...
-
Read the Basis for Conclusions (paragraphs B1 through B38) in FAS Bs Statement of Financial Accounting Standards No. 154 to respond to the following questions. 1. When debating the issues of FAS Bs...
-
Do assets under construction for a company's own use qualify for interest cost capitalization? Explain.
-
Show all the steps leading to the integral balance equation (18.6) in the text. Use the following boundary conditions and verify Eq. (18.7). (i) At \(y=0, T=T_{\mathrm{S}}\). (ii) At...
-
Consider the flat-plate heat transfer to be solved by the similarity approach. Show all the details leading to Eq. (18.15). What are the boundary conditions on \(\theta\) ? Extend your MATLAB code to...
-
For fluids with \(\operatorname{Pr} <1\) the velocity profile is assumed to be a cubic for \(y
Study smarter with the SolutionInn App