Business, 13.04.2021 03:30 innocentman69

Ivanhoe Windows manufactures and sells custom storm windows for three-season porches. Ivanhoe also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ivanhoe enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,370 and chooses Ivanhoe to do the installation. Ivanhoe charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Ivanhoe $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,120) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Ivanhoe completes installation on October 15, 2020, and the customer pays the balance due. Prepare the journal entries for Geraths in 2014. Refer to the revenue arrangement: Repeat the requirements, assuming (a) Geraths estimates the standalone value of the installation based on an estimated cost of $400 plus a margin of 20% on cost, and (b) given uncertainty of finding skilled labor, Geraths is unable to develop a reliable estimate for the fair value of the installation.

Answers: 1

Show answers

Answers

Answer from: shayleewright

Ivanhoe Windows

a. Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,920

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Credit Installation Revenue $450

To record the completion of installation service.

b. Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,896

Credit Unearned Revenue $24

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Debit Unearned Revenue $24

Credit Installation Revenue $474

To record the completion of installation service.

c. If Geraths is unable to develop a reliable estimate for the fair value of the installation:

Journal Entries:

September 1, 2020:

Debit Cash $1,920

Credit Sales Revenue $1,920

To record the sale of windows to Geraths.

Debit Cost of goods sold $1,120

Credit Inventory $1,120

To record the cost of goods sold.

October 15, 2020:

Debit Cash $450

Credit Sales Revenue $450

To record the completion of installation.

Explanation:

a) Data and Calculations:

July 1, 2020, Contract Price = $2,370

Standalone selling price of window = $1,920

Cost of the window = $1,120

Standalone selling price of installation service = $590

Attributed selling price of installation service = $450 ($590 = $140)

b) Estimated standalone value of the installation = estimated cost + 20% on cost

= $400 + 20% = $480 ($400 * 1.2)

Separate performance values:

Sale of window = $1,920 = $1,896 ($1,920/$2,400 * $2,370)

Installation = 480 = 474 ($480/$2,400 * $2,370)

Total = $2,400 = $2,370

c. If Ivanhoe Windows is unable to develop a reliable estimate for the fair value of the installation, both payments received will be attributed to the Sales Revenue without identifying separate performance values.

Answer from: Quest

i would go with get a bachelor’s degree

hope i

-lavira : )

Answer from: Quest

Ithink the answer is a. expectation.

Another question on Business

Business, 21.06.2019 21:00

You have just been hired as a financial analyst for barrington industries. unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. so, your first job will be to recreate the firm's cash flow statement for the year just ended. the firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. it earned $5 million in net income during the year but paid $800,000 in dividends to common shareholders. throughout the year, the firm purchased $5.5 million of machinery that was needed for a new project. you have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. what was the firm's end- of-year cash balance? recreate the firm's cash flow statement to arrive at your answer

Answers: 1

Answer

Business, 22.06.2019 03:30

Tiana daniels enterprise’s trial balance as at december 31, 2016 did not balance. on february 15, 2017 the following errors were detected: errorsi. water rates had been undercast by $2, 000. ii. a cheque paid to yvonne walch of $2, 680 had been posted to the credit side of her account. iii. discount received total of $1, 260 had been posted to the debit side of the discount allowed account as $1, 620. iv. rent paid in the amount of $24, 000 had been posted to the credit of the rent received account. v. wayne returned goods valuing $1, 680 to daniels enterprise but had been completely omitted from the books. required: 1. prepare the journal entries to correct the errors. (narrations required) 14.5 marks 2. prepare the suspense account showing clearly the original trial balance error. 8 marks

Answers: 2

Answer

Business, 22.06.2019 07:30

Awell-written business plan can improve your chances of getting funding and give you more free time. improved logistics. greater negotiating power.

Answers: 1

Answer

Business, 22.06.2019 11:20

In 2000, campbell soup company launched an ad campaign that showed prepubescent boys offering soup to prepubescent girls. the girls declined because they were concerned about their calorie intake. the boys explained that “lots of campbell’s soups are low in calories,” which made them ok for the girls to eat. the ads were pulled after parents expressed concern. why were parents worried? i

Answers: 2

Answer

You know the right answer?

Ivanhoe Windows manufactures and sells custom storm windows for three-season porches. Ivanhoe also p...

Questions