Please help Intermediate Accounting1
Chiz Curls Inc. buys and sells photocopy equipment that are used in businesses across Manila. The company follow IFRS. Unit selling prices range from $10,000 to $100,000. Chiz Curls Inc. sells a photocopy system to Miriam College on September 10th, 2020. The selling price for the photocopy equipment is usually $85,500. Chiz Curls Inc.will also install the photocopy system. The estimated fair value of installing the photocopy system is $2,700. Chiz Curls 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. Chiz Curls Inc. sold the photocopy system with installation and maintenance to Miriam College for $85,000. The photocopy system cost Electronic Inc. $45,000. Miriam College. is obligated to pay Chiz Curls Inc. $20,000 upon delivery of the photocopy system and the balance on November 15th. Chiz Curls Inc. delivers the photocopy equipment on October 15th, 2020, and completes the installation of the photocopy equipment on November 19, 2020. On December 31" Miriam College pays for 2 months of maintenance services. The following December 31" Miriam College pays for 10 months of maintenance services. On November 15th Miriam College informs Chiz Curls 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. Miriam College borrows fund at a rate of 6%. Chiz Curls Inc. has various loans at 5% interest. The company's year-end is December 31" 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. Focus Account Debit Amount Credit Amount Sept 10th Oct 15th Nov 1st Nov 15th Dec 31 Dec 31 Nov 15th Nov 15th Dec 31 Chiz Curls Inc. buys and sells photocopy equipment that are used in businesses across Manila. The company follow IFRS. Unit selling prices range from $10,000 to $100,000. Chiz Curls Inc. sells a photocopy system to Miriam College on September 10th, 2020. The selling price for the photocopy equipment is usually $85,500. Chiz Curls Inc.will also install the photocopy system. The estimated fair value of installing the photocopy system is $2,700. Chiz Curls 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. Chiz Curls Inc. sold the photocopy system with installation and maintenance to Miriam College for $85,000. The photocopy system cost Electronic Inc. $45,000. Miriam College. is obligated to pay Chiz Curls Inc. $20,000 upon delivery of the photocopy system and the balance on November 15th. Chiz Curls Inc. delivers the photocopy equipment on October 15th, 2020, and completes the installation of the photocopy equipment on November 19, 2020. On December 31" Miriam College pays for 2 months of maintenance services. The following December 31" Miriam College pays for 10 months of maintenance services. On November 15th Miriam College informs Chiz Curls 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. Miriam College borrows fund at a rate of 6%. Chiz Curls Inc. has various loans at 5% interest. The company's year-end is December 31" 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. Focus Account Debit Amount Credit Amount Sept 10th Oct 15th Nov 1st Nov 15th Dec 31 Dec 31 Nov 15th Nov 15th Dec 31
