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Nady [450]
3 years ago
7

On May 10, 2020, Splish Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the

full contract price of $2,060 on July 15, 2020. The cost of the goods is $1,380. Splish delivers the product to Greig on June 15, 2020, and receives payment on July 15, 2020. Prepare the journal entries for Splish related to this contract. Either party may terminate the contract without compensation until one of the parties performs.
Business
1 answer:
Amiraneli [1.4K]3 years ago
4 0

Answer:

May 15, 2020

No Entry

June 15, 2020

Debit: Account Receivable 2,060

Credit Revenue 2,060

Debit COGS 1,380

Credit Inventory 1,380

July 15, 2020

Debit Cash 2,060

Credit Account Receivable 2,060

Explanation:

Preparation of the journal entries for Splish related to this contract.

May 15, 2020

No Entry

June 15, 2020

Debit: Account Receivable 2,060

Credit Revenue 2,060

Debit COGS 1,380

Credit Inventory 1,380

July 15, 2020

Debit Cash 2,060

Credit Account Receivable 2,060

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B. Contained in

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Record the entry to close the income summary assuming the partners agree to use plan c and net income is $460,500
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The entry is record in book as

Date Particular                L.F.     Dr. Amt.        Cr. Amt.

Income summary a/c             $460,500  

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To Lu a/c                                          $269,500

To Barb a/c                                          $431,200

What is net income?

The total amount of firm profit after deducting all taxes, costs, and interest is referred to as "net income."

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Capital invested        $69,300    $269,500  $431,200

Profit sharing ratio 20/100   40/100         40/100

Profit ($460,500)         92100    184200 184200

As a result,  Mo is  92100;  Lu is 184200; Barb is 184200 as profit.

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2 years ago
Tobin inherited 100 acres of land on the death of his father this year. A Federal estate tax return was filed and the land was v
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The basis of Tobin's land was stepped up or down to the fair market value, and that value was $3,00,000.

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Tobin has inherited a property from his father, that died in the present year, and the sightly market value on the date of death, according to the federal estate tax return, is $3,00,000. Tobin's basis in land is $3,00,000.

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