1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
polet [3.4K]
3 years ago
11

Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for

the windows. The installation process does not involve changes in the windows, so this service can be provided by other vendors. Windsor enters into the following contraction June 1, 2021, with a local homeowner. The customer purchases windows for a price of $4,700 and chooses Windsor to do the installation. Windsor charges the same price for the windows irrespective of whether it does the installation or not. The price of the installation service is estimated to have a fair value of $1,200. The customer pays Windsor $4,000 (which equals the fair value of the windows, which have a cost of $2,300) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on August 1, 2021, Windsor completes installation on September 15, 2021, and the customer pays the balance due.
Required:
Prepare the journal entries for Windsor in 2018. (Round amounts to the nearest dollar.)
Business
1 answer:
Alina [70]3 years ago
8 0

Answer:

June 1, 2021

No entry – neither party has performed under the contract.

August 1,2021

Dr.  Cash                                        $4,000

Dr.  Accounts Receivable            $700

Cr.  Unearned Service Revenue  $1,085

Cr.  Sales revenue                        $3,615

Dr.  Cost of goods Sold                $2,300

Cr.  Inventory                                 $2,300

Explanation:

As no one performed under the contract on June 1, 2021, so there will be no entry on this day.

On August 1, 2021, Windsor has 2 performance obligations

First: Delivery of the windows

&

Second: Installation of the windows

Fair value of Windows = $4,000

Fair value of Installation services = $1,200

Fair Value of Contract  = $4,000 + $1,200 = $5,200

Allocation of to revenue is based on the ratio of fair value of each performance to the total fair value of contract, As below

Windows  = ($4,000 / $5,200) X $4,700 = $3,615 (round to nearest dollar)

Installation services = ($1,200/$5,200) X $4,700 = $1,085 (round to nearest dollar)

Total Revenue recognized = $4,700

You might be interested in
Alicia heard that as a general rule, she should spend no more than one week's pay on rent. If Alicia's pay is $35,256 per year,
Nastasia [14]
If Alicia pay per year is $35,256 and there are twelve months in a year, then her monthly salary is $35,256/12 = 2,938.
This means that Alicia earns $2, 938 each month. 
Conventionally, there are four weeks in a month, thus, Alicia earns $2,938/4 = 734.50. This means that, Alicia earns $734. 50 each week and this is the amount that Alicia is expected to spend on rent on a monthly basis.
8 0
3 years ago
Read 2 more answers
Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o
vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0
3 years ago
Suppose that you just purchased 150 shares of XYZ stock for $60 per share. a. If the initial margin requirement is 71.00%, how m
Kisachek [45]

Answer:

$2,610

Explanation:

Calculation for how much money you must borrow.

Using this formula

Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)

Let plug in the formula

Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)

Amount to be borrowed=$9,000*(0.29)

Amount to be borrowed=$2,610

Therefore how much money you must borrow will be $2,610

5 0
3 years ago
Erin collides her 940-kg Mazda Miata into the rear of a 2460-kg pick-up truck which was at rest at the light on Lake Avenue. The
BigorU [14]

Answer:

3.46 m/s

Explanation:

This is actually a Physics question and not a Business question.

According to the property of conservation of momentum, the speed of the Mazda before the collision multiplied by the mass of the Mazda must equal the speed after the collision multiplied by the mass of both cars:

m_1v_1=(m_1+m_2)*v_2\\940*12.5=(940+2460)*v_2\\v_2= 3.46\ m/s

The post-collision speed of the two entangled cars is 3.46 m/s.

4 0
3 years ago
Growing chocolate is important to West African economies but they do not make as much money as the multinational companies that
kupik [55]

Answer: The name of the ghanaian brand is "57 chocolate"

Explanation:

57 Chocolate belongs to two sisters

Priscilla and Kimberly Addison, the creators of 57 chocolate, made in Ghana by Ghanaians, for Ghanaians. Their chocolates which come in dark, milk, white chocolate, mocha latte and bissap flavours are uniquely packaged in adinkra symbol shapes. and is the pioneer bean to bar chocolate business in Ghana. This venture uses resources grown within the country to create delicious chocolate

7 0
2 years ago
Other questions:
  • Harmony is currently producing 100 units of a necessary component part by incurring $60,000 in direct materials, $12,500 in dire
    13·1 answer
  • Why are computer skills an important part of online learning?
    7·2 answers
  • Which of the following is a difference between reactors and analyzers?
    5·1 answer
  • Deep Hollow Oil issued 135,000 shares of stock last week. The underwriters charged a spread of 8.05 percent in exchange for agre
    15·1 answer
  • Al’s Automotive started the year with total assets of $250,000 and total liabilities of $180,000. During the year the business r
    13·1 answer
  • On march 1, year 1, roland doe bought 200 shares of gummit stock at $40 per share. on april 1, year 2, roland sold short (sold w
    5·1 answer
  • Adjustments for physical characteristics are intended to capture the dimensions in which a comparable property differs physicall
    7·1 answer
  • Sometimes food is produced in other countries that do not have the same level of chemical safety as in the US. This imported foo
    13·1 answer
  • "A pattern day trading account has a high market value during the day of $200,000 and has a "0" position at the end of the day.
    7·1 answer
  • Your supermarket is trying to determine how many meatloaf dinners should be produced on Monday. The Monday demand for meatloaf d
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!