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Oksana_A [137]
3 years ago
8

Stellar Company sells goods that cost $309,500 to Record Company for $415,500 on January 2, 2020. The sales price includes an in

stallation fee, which has a standalone selling price of $45,500. 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) Prepare the journal entries (if any) to record the sale on January 2, 2020. (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.)
Business
1 answer:
Nina [5.8K]3 years ago
5 0

Answer:

See explanation section

Explanation:

The journal entry to record the sale of goods is as follows:

January 2, 2020 Accounts receivable-Record Company   Debit  $415,500

                            Sales Revenue                      Credit          $370,000

                            Unearned service revenue  Credit           $45,500

As the selling price is $415,500, Stellar will receive $415,500 from Record company. However, the sales revenue is the selling price of the goods, which is $370,000. $45,500 is an installation fee for which Steller will give service for the next 6 months. Therefore, it is an unearned revenue assuming that the receivable will pay the money within a few months or earlier or before the service has been performed.

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QveST [7]

Answer: coupon rate is greater than its yield to maturity

Explanation: This is because investors are interested in high yield and will not mind paying for it in other to get a higher payment from coupon.

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3 years ago
Wilfred Nadeau owns 300 shares of Consolidated Glue. The​ company's board of directors recently declared a cash dividend of 45 c
dedylja [7]

Answer:

<u>a. Zero dividend.</u>

<u>b. 3.5 new shares</u>;

<em>texes will be paid.</em>

<u>Explanation:</u>

a. March 20 is a date earlier than when the dividends are too be paid on April 18, and as such Wilfred Nadeau<em> will not</em> receive any dividend if he sells his stocks since he no longer has ownership of them.

b. 45 cents dividends per 300 stocks of Wilfred is $135 (reinvestment dividend plan).

With a discount of 3.4% at $39.8 (3.4%*39.8) current price per stock makes the total cost per stock after discount= $38.4.

Dividing the reinvestment dividend plan over the discounted price (135/38.4) = 3.5 new shares, According to the requirements of law the investor must still pay tax annually on his or her dividend income, whether it is received as cash or reinvested.

8 0
3 years ago
What are the pros and cons of being a single decision-maker?
Tanya [424]

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No one can stop you from picking that person/place/thing.


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6 0
3 years ago
Read 2 more answers
Net sales for the year were $325,000 and cost of goods sold was $240,500 for the company’s existing products. A new product is
marin [14]

Answer:

The correct answer is B.

Explanation:

Gross profit equals net sales minus cost of sales(Net sales- Cost of Sales).

Net sales = $325,000

Cost of Sales = $240,500

Therefore we have;

$325,000 - $240,500

=$84,500

Gross profit ratio is (Gross profit/net sales) x 100%

($84,500 x $325,000) x 100%

26%

6 0
3 years ago
At year end, CurlZ, Inc.'s inventory consists of 370 bottles of CleanZ at $3 per bottle and 270 boxes of DyeZ at $10 per box. Ma
sasho [114]

Answer:

$3,270

Explanation:

Inventory should be value at lower of cost and market value.

Bottles of CleanZ:

Cost of inventory = Bottles of CleanZ × Price per bottle

                             = 370 × $3

                             = $1,110

Market value of inventory:

= Bottles of CleanZ × Market value per bottle

= 370 × $3.20 per bottle

= $1,184

Lowest of cost and market value of inventory is $1,110.

Boxes of DyeZ:

Cost of inventory = Boxes of DyeZ × Price per box

                             = 270 × $10

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Market value of inventory:

= Boxes of DyeZ × Market value per box

= 270 × $8 per box

= $2,160

Lowest of cost and market value of inventory is $2,160.

Therefore, the DyeZ. CurlZ should report its inventory at:

= Lowest of cost and market value of inventor for (CleanZ + DyeZ)

= $1,110 + $2,160

= $3,270

3 0
3 years ago
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