Pearl Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Pearl Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Respond to the requirements related to the following independent revenue arrangements for Pearl products and services. Click here to view factor table. Pearl offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $828. On a standalone basis, the grill sells for $711 (cost $431), and Pearl estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $165. (The selling of the grill and the installation services should be considered two performance obligations.) Pearl signed 10 GM205 contracts on April 20, 2020, and customers paid the contract price in cash. The grills were delivered and installed on May 15, 2020. Prepare journal entries for Pearl for GM205 in April and May 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually if no entry is required, select "No entry for the account titles and enter O for the amounts, Round answers to 0 decimal places, eg. 5,275.) Account Titles and Explanation Date eTextbook and Media List of Accounts (To record sales) (To record cost of goods sold) The State of Kentucky is planning major renovations in its parks during 2020 and enters into a contract with Pearl to purchase 400 durable, easy maintenance, standard charcoal grills during 2020. The grills are priced at $210 each (with a cost of $160 each), and Pearl provides a 5% volume discount if Kentucky purchases at least 290 grills during 2020. On April 17, 2020, Pearl delivered and received payment for 270 grills. Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Pearl for grills sold on April 17, 2020. Assume the company records sales transaction net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually if no entry is required, select "No entry for the account titles and enter O for the amounts) Account Titles and Explanation eTextbook and Media (To record sales) List of Accounts (To record cost of goods sold) Debit Debit Credit Pearl sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1.040 (cost $596) on credit with terms 3/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the company records sales net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is y is required, select "No entry for the account titles and enter O for the amounts) No. (1) (2) Date eTextbook and Media List of Accounts Date eTextbook and Media Account Titles and Explanation List of Accounts. (To record sales) (To record cost of goods sold) (To record sales) On October 1, 2020, Pearl sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Pearl accepted a 3-year, zero-interest-bearing note with face amount of $5,803. The grill has an inventory cost of $2,848. An interest rate of 10% is an appropriate market rate of interest for this customer. Prepare the journal entries on October 1, 2020, and December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971.) Account Titles and Explanation (To record cost of goods sold) (To record sales) Debit (To record cost of goods sold). Debit 000 ப0 ப்ப Pearl Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Respond to the requirements related to the following independent revenue arrangements for Pearl products and services. Click here to view factor table. Pearl offers contract GM205, which is comprised of a free-standing gas grill for small patio use plus installation to a customer's gas line for a total price $828. On a standalone basis, the grill sells for $711 (cost $431), and Pearl estimates that the standalone selling price of the installation service (based on cost-plus estimation) is $165. (The selling of the grill and the installation services should be considered two performance obligations.) Pearl signed 10 GM205 contracts on April 20, 2020, and customers paid the contract price in cash. The grills were delivered and installed on May 15, 2020. Prepare journal entries for Pearl for GM205 in April and May 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually if no entry is required, select "No entry for the account titles and enter O for the amounts, Round answers to 0 decimal places, eg. 5,275.) Account Titles and Explanation Date eTextbook and Media List of Accounts (To record sales) (To record cost of goods sold) The State of Kentucky is planning major renovations in its parks during 2020 and enters into a contract with Pearl to purchase 400 durable, easy maintenance, standard charcoal grills during 2020. The grills are priced at $210 each (with a cost of $160 each), and Pearl provides a 5% volume discount if Kentucky purchases at least 290 grills during 2020. On April 17, 2020, Pearl delivered and received payment for 270 grills. Based on prior experience with the State of Kentucky renovation projects, the delivery of this many grills makes it certain that Kentucky will meet the discount threshold. Prepare the journal entries for Pearl for grills sold on April 17, 2020. Assume the company records sales transaction net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually if no entry is required, select "No entry for the account titles and enter O for the amounts) Account Titles and Explanation eTextbook and Media (To record sales) List of Accounts (To record cost of goods sold) Debit Debit Credit Pearl sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1.040 (cost $596) on credit with terms 3/30, net/90. Prepare the journal entries for the sale of 20 grills on September 1, 2020, and upon payment, assuming the customer paid on (1) September 25, 2020, and (2) October 15, 2020. Assume the company records sales net. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is y is required, select "No entry for the account titles and enter O for the amounts) No. (1) (2) Date eTextbook and Media List of Accounts Date eTextbook and Media Account Titles and Explanation List of Accounts. (To record sales) (To record cost of goods sold) (To record sales) On October 1, 2020, Pearl sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Pearl accepted a 3-year, zero-interest-bearing note with face amount of $5,803. The grill has an inventory cost of $2,848. An interest rate of 10% is an appropriate market rate of interest for this customer. Prepare the journal entries on October 1, 2020, and December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971.) Account Titles and Explanation (To record cost of goods sold) (To record sales) Debit (To record cost of goods sold). Debit 000 ப0 ப்ப
Expert Answer:
Answer rating: 100% (QA)
a Requirement A Date April 200 Cash 2020 Particulous To Unear... View the full answer
Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Grill Master Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Instructions Respond to the...
-
Grill Master Company sells total outdoor grilling solutions, providing gas and charcoal grills, accessories, and installation services for custom patio grilling stations. Instructions Respond to the...
-
Greenback Sporting, a retailer of outdoor wear and sporting equipment, is investigating an opportunity to purchase Active Lifestyle Inc. An acquisition is expected to lower overhead costs, improve...
-
Navarro Corporation purchased machinery on January 1, 2010, at a cost of $330,000. The estimated useful life of the machinery is 5 years, with an estimated salvage value at the end of that period of...
-
What are the pros and cons of a firm such as Apple having its own retail facilities and E-commerce Web site (www.apple.com) as well as selling through traditional retailers?
-
Determining total job costs using predetermined overhead rate} Mindy-Mae Manufacturing Company uses the job order cost system of accounting. The following is a list of the jobs completed during the...
-
1. Experts say that entrepreneurs who need between $100,000 and $3 million often face the greatest obstacles when raising capital for their businesses. Why? 2. How should Kevin Semcken raise the $1.5...
-
PROBLEM 3 (P7) Let n be a positive odd integer and let f: R - R be given by f (x) = x". Find all points where f is increasing or decreasing, where f is concave up or concave down, the critical points...
-
1. What type of attitude scale is used by the ACSI if any? 2. What type of attitude study might you design if you were the consultant? 3. How would you use results from this approach to diagnose...
-
Which of the following are true statements about futures contracts (mark all that are true)? ( ) futures contracts are the right, but not the obligation, to buy or sell the commodity in the future (...
-
Hua is a trader who seeks to minimize any exposure in the portfolio to market beta by pairing a long position in one stock and a short position in a related stock in anticipation that the price...
-
Dividends on common stock during Year 2 ?totaled $ 1 5 ?thousand. The market price of common stock at the end of Year 2 ?was $ 1 6 . 3 0 ?per share. Required: Compute the following for Year 2 : ? a ....
-
Julia purchases a new piece of equipment for her business. The equipment was purchased for $65,000 and is expected to generate the following cash flows at the end of each year for the next seven...
-
Define physical investment line and financial investment line and their significance in light of the separation theorem.
-
Based on a survey, assume that 27% of consumers are comfortable having drones deliver their purchases. Suppose that we want to find the probability that when six consumers are randomly selected,...
-
Identify the attractors and state what type of attractor If no attractor state corresponding equilibrium or oscillation type Draw an approximate time series graph for one of the variables ii 0 5 V 0...
-
Arlington Merchants reported the following on its income statement for the fiscal years ending December 31, 2016 and 2015. 2016 2015 Sales $4,857,500 $4,752,900 Cost of goods sold 3,258,950 3,207,000...
-
Riegel Company uses the LCNRV method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2022, consists of products D, E, F, G, H, and I. Relevant per-unit...
-
Blair Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Blair will receive a payment of 10,000,000 if the drug receives regulatory approval. Based on...
-
Joblonsky Jewelry has recently hired a new independent auditor, Karen Ogleby, who says she wants to get everything straightened out. Consequently, she has proposed the following accounting changes in...
-
You have been speaking to a friend who owns a small business, and she has said that she has read something about strategic management and that no modern business can afford not to get involved with...
-
Jones Dairy Ltd (Jones) operates a doorstep fresh milk delivery service. Two brothers carry on the business that they inherited from their father in the early 1980s. They are the businesss only...
-
Management accounting information should be understandable. As some managers have a poor knowledge of accounting we should produce simplified financial reports to help them. To what extent do you...
Study smarter with the SolutionInn App