Corporate Accounting 1 P18A-3
Grill Master 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 Grill Master products and services. Grill Master offers contract GM205, which is comprised of a free-standin gas grill for small patio use plus installation to a customer's gas line for a total price $800. On a standalone basis, the grill sells for $710 (cost $37 and Grill Master estimates that the fair value of the installation service (based on cost-plus estimation) is $170. Grill Master signed 12 GM205 contracts on April 20, 2014, and customers paid the contract price in cas The grills were delivered and installed on May 15, 2014. Prepare journal entries for Grill Master for GM205 in April and May 2014. (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 0 for the amounts Round answers to 0 decimal places, e.g. 5,275.) Date Apr. 20, 2014 May 15, 2014 Account Titles and Explanation (To record revenue) May 15, 2014 (To record cost of goods sold) SHOW LIST OF ACCOUNTS LINK TO TEXT The State of Kentucky is planning major renovations in its parks during 2014 and enters into a contract with Grill Master to purchase 475 durabl easy maintenance, standard charcoal grills during 2014. The grills are priced at $205 each (with a cost of $155 each), and Grill Master provide a 5% volume discount if Kentucky purchases at least 330 grills during 2014. On April 17, 2014, Grill Master delivered and received payment fo 290 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 Grill Master for grills sold on April 17, 2014. (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 0 for the amounts Round answers to 0 decimal places, e.g. 5,275.) Date Apr. 17, 2014 Account Titles and Explanation (To record revenue) Apr. 17, 2014 (To record cost of goods sold) SHOW LIST OF ACCOUNTS LINK TO TEXT Grill Master sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,160 (cost $575) on credit with terms 3/30, net/90. Prepare the journal entries for the sale of 27 grills on September 1, 2014 and upon payment, assuming the customer paid on September 25, 2014 Assume the company records sales net. automatically indented when the amount is entered. manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Sept. 1, 2014 (To record revenue) Sept. 1, 2014 (To record cost of goods sold) Sept. 25, 2014 SHOW LIST OF ACCOUNTS LINK TO TEXT Grill Master sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold for $1,160 (cost $575) on credit with terms 3/30, net/90. Prepare the journal entries for the sale of 27 grills on September 1, 2014 and upon payment, assuming the customer paid on October 15, 2014. Assume the company records sales net. automatically indented when the amount is entered. manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.) Date Account Titles and Explanation Sept. 1, 2014 (To record revenue) Sept. 1, 2014 (To record cost of goods sold) Oct. 15, 2014 SHOW LIST OF ACCOUNTS LINK TO TEXT On October 1, 2014, Grill Master sold one of its super delu gas/charcoal grills to a local builder. The builder plans to in its \"Parade of Homes\" houses. Grill Master accepted a 3-y bearing note with face amount of $5,405. The grill has an i $2,685. An interest rate of 10% is an appropriate market ra this customer. Prepare the journal entries on October 1, 2014, and Decem 2014. (Credit account titles are automatically indented amount is entered. Do not indent manually. If no entry select "No Entry" for the account titles and enter 0 for For calculation purposes, use 5 decimal places as disp factor table provided. Round answers to 0 decimal pla Date Account Titles and Explanation Debit Oct. 1, 2014 (To record sales revenue) Oct. 1, 2014 (To record cost of goods sold) Dec. 31, 2014
