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olga_2 [115]
3 years ago
12

Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an insta

llation fee, which has a standalone selling price of $40,000. The standalone selling price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.
a. (a) Prepare the journal entry (if any) to record the sale on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)


b. Shaw prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Shaw recognize related to its sale to Ricard?
Business
1 answer:
arlik [135]3 years ago
5 0

Answer:

Explanation:

a. The journal entries are shown below:

Accounts receivable A/c Dr $410,000

            To Sales revenue A/c $370,000

            To Unearned service revenue A/c $40,000

(Being the sale is recorded)

Cost of goods sold A/c Dr $300,000

          To Merchandise inventory A/c $300,000

(Being inventory is sold at cost)

b.  The recognized revenue would be

Sales revenue $370,000

Service revenue $20,000

Total revenue $390,000

The service revenue would be

= $40,000 × 3 months ÷ 6 months

= $20,000

And, the 3 months is computed from January 2 to March 31

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7 0
2 years ago
The four step instructional training method introduced in World War I used the following steps​
Pani-rosa [81]

<u>Answer:</u>

<em>The four-step methods used the steps of the show, tell, do, and check  </em>

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<u>Explanation:</u>

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7 0
3 years ago
Famous Foods is a fast-food chain restaurant famous for its hot coffee (its coffee temperature is a bit higher than that of the
ASHA 777 [7]

Answer: 1. a. The existence of a no-fault law.

2. d. $17,000

Explanation:

1. For Jane to prove that Famous was indeed negligent, she definitely does not need the No - Fault law. This is a law that is mostly applicable to motor vehicle accidents and means that the individual parties are responsible for whatever injuries they sustain and the person who actually caused the accident is irrelevant. The main aim of this is to reduce the damages claims that one can be put on Insurance which increase insurance premiums.

<em>If this law was to be applied here, Jane would</em> <em>be responsible for her own injuries and her suit would fail. </em>

2. Jane missed 2 weeks of work and in each week she earns $5,000.

She also had medical expenses of $4,000 and estimated pain and suffering of $3,000.

The general damages therefore are the two weeks she missed plus the medical expenses and the pain and suffering.

= 5,000 ( 2) + 4,000 + 3,000

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7 0
2 years ago
Using the income statement for Times Mirror and Glass Co., compute the following ratios:
Umnica [9.8K]

Answer:

(A) Interest coverage charge ratio= 6.21

(B) Fixed charge coverage = 2.84

(C) Profit margin ratio= 8.57%

(D) Total assets turnover= 1.55

(E) Return on assets= 13.26%

Explanation:

(A) The Interest coverage charge ratio can be calculated as follows= EBIT/Interest expense

= 45,300/7,300

= 6.21

(B) The fixed charge coverage can be calculated as follows

= income before fixed charge + interest/fixed charges + interest

= 45,300+13,300/7,300+13,300

= 58,600/20,600

= 2.84

(C) The profit margin ratio can be calculated as follows

= Net income/sales × 100

= 22,800/266,000 × 100

=0.0857 × 100

= 8.57%

(D) The total assets turnover can be calculated as follows

= Sales/total assets

= 266,000/172,000

= 1.55

(E) The return on assets can be calculated as follows

= Net income/Total assets × 100

= 22,800/172,000 × 100

= 0.13255×100

= 13.26%

8 0
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Answer:

i am stuck as well

Explanation:

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