Exercise Electronics Inc buys and sells photocopy equipment that are used in businesses across Ontario The company follow IFRS Unit selling prices range from $10,000 to $100,000 Electronic Inc sells a photocopy system to Centennial College on September 10th, 2020 The selling price for the photocopy equipment is usually $85,500 Electronic Inc will also install the photocopy system The estimated fair value of installing the photocopy system is $2,700 Electronic Inc will also provide one year of maintenance service for the photocopy system The fair value for the maintenance for the year is $1,800 Electronic Inc sold the photocopy system with installation and maintenance to Centennial College for $85,000 The photocopy system cost Electronic Inc $45,000 Centennial Inc is obligated to pay Electronic Inc $20,000 upon delivery of the photocopy system and the balance on November 15th Electronic Inc delivers the photocopy equipment on October 15th, 2020, and completes the installation of the photocopy equipment on November 1 st , 2020 On December 31 st Centennial College pays for 2 months of maintenance services The following December 31 st Centennial College pays for 10 months of maintenance services On November 15 th Centennial College informs Electronic Inc that they will be not be able to pay their account that is due The two parties enter into an agreement that the account will be converted into a non interest bearing promissory note to be repaid in one year from now The maturity value of the note is $67,098 Centennial College borrows fund at a rate of 6 Electronic Inc has various loans at 5 interest The company's year end is December 31 st Prepare the journal entries for 2020 and 2021 If there is no entry be sure to state no entry Hint remember to allocate the revenue among the different performance obligations and then use this information when you prepare the journal entries do Cut Calibri (Body) 14 A A Wrap Text General copy Paste Format BIU A E E Merge Center $ 00 Conditional Format Cell Insert Delete Format Formatting as Table Styles C66 X V fx A B C D E F G 2 ii If it is no entry please state no entry Account Debit Amount Credit 4 Amount 5 Sept 10th 6 8 Oct 15 10 11 12 13 14 15 16 17 18 9 Nov 1st 20 21 22 23 24 Nov 15th 25 26Copy Paste Format B I U A E Merge Center $ 10 0 Conditional Format Cell Insert Delete Format Formatting as Table Styles Clear C66 X V fx A B C D E G H 29 Dec 31 30 31 32 33 34 35 Dec 31 36 37 38 39 40 Nov 15th 41 42 43 44 45 46 47 Nov 15th 48 49 50 51

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Exercise: Electronics Inc. buys and sells photocopy equipment that are used in businesses across Ontario. The company follow IFRS. Unit selling prices range from $10,000

Exercise:

Electronics Inc. buys and sells photocopy equipment that are used in businesses across Ontario. The company follow IFRS. Unit selling prices range from $10,000 to $100,000.

Electronic Inc. sells a photocopy system to Centennial College on September 10th, 2020. The selling price for the photocopy equipment is usually $85,500.
Electronic Inc. will also install the photocopy system. The estimated fair value of installing the photocopy system is $2,700.
Electronic Inc. will also provide one year of maintenance service for the photocopy system. The fair value for the maintenance for the year is $1,800.
Electronic Inc. sold the photocopy system with installation and maintenance to Centennial College for $85,000. The photocopy system cost Electronic Inc. $45,000.

Centennial Inc. is obligated to pay Electronic Inc. $20,000 upon delivery of the photocopy system and the balance on November 15th.

Electronic Inc. delivers the photocopy equipment on October 15th, 2020, and completes the installation of the photocopy equipment on November 1^st, 2020.

On December 31^stCentennial College pays for 2 months of maintenance services. The following December 31^stCentennial College pays for 10 months of maintenance services.

On November 15^th Centennial College informs Electronic Inc. that they will be not be able to pay their account that is due. The two parties enter into an agreement that the account will be converted into a non-interest bearing promissory note to be repaid in one year from now. The maturity value of the note is $67,098. Centennial College borrows fund at a rate of 6%. Electronic Inc. has various loans at 5% interest. The company's year-end is December 31^st.

Prepare the journal entries for 2020 and 2021. If there is no entry be sure to state no entry. Hint remember to allocate the revenue among the different performance obligations and then use this information when you prepare the journal entries.

do Cut Calibri (Body) . 14 . A- A = = Wrap Text . General copy Paste Format BIU. . . A. E E + Merge & Center . $ % .00 Conditional Format Cell Insert Delete Format Formatting as Table Styles C66 X V fx A B C D E F G 2 ii. If it is no entry please state no entry Account Debit Amount Credit 4 Amount 5 Sept 10th 6 8 Oct 15" 10 11 12 13 14 15 16 17 18 9 Nov 1st 20 21 22 23 24 Nov 15th 25 26Copy . Paste Format B I U . A . E |Merge & Center . $ . % 10.0 Conditional Format Cell Insert Delete Format Formatting as Table Styles Clear C66 X V fx A B C D E G H 29 Dec-31 30 31 32 33 34 35 Dec-31 36 37 + 38 39 40 Nov 15th 41 42 43 44 45 46 47 Nov 15th 48 49 50 51