Question
On Oct 31 st , Multitool Inc. receives a purchase order for the 45 tools, 6 months of service, and 30 pounds of grease. The
On Oct 31st, Multitool Inc. receives a purchase order for the 45 tools, 6 months of service, and 30 pounds of grease. The customer paid in cash. The tools were delivered on the same day, and the grease one week later. The service agreement began November 1st.
The retail prices for the items are as follows:
Tools $16 / piece
Service $20 /month
Grease $4 / lb.
Provide the transactional journal entries associated with this sale for Mochi Corp on the date of the transaction.
How much sales revenue does Multitool recognize on Oct 31st?
How much deferred revenue does Multitool recognize on Oct 31st?
How much Service revenue does Multitool recognize on Dec 31st, assuming that Multitool prepares financial statements once every quarter?
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From Zero To Zen Secret Keys To Nurturing Your Numbers And Finding Financial Flow
Authors: Liz Lajoie
1st Edition
1683507045, 978-1683507048
