Question 2.

On May 3, 2020, Carla Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $920 and was paid by Carla Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $220, and total installation costs of $300 on the freezers sold. (Round answers to 0 decimal places, e.g. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $ (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $ (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $ On May 1,2020, Pina Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $947 in advance on May 15, 2020. Kickapoo pays Pina on May 15, 2020, and Pina delivers the mower (with cost of $592 ) on May 31,2020. (a) Prepare the journal entry on May 1, 2020, for Pina. (Credit account titles are automatically indented when the amount is entered. Do no indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b) Prepare the journal entry on May 15, 2020, for Pina. (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.) (c) Prepare the journal entry on May 31, 2020, for Pina. (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.) On May 3, 2020, Carla Company consigned 80 freezers, costing $500 each, to Remmers Company. The cost of shipping the freezers amounted to $920 and was paid by Carla Company. On December 30, 2020, a report was received from the consignee, indicating that 40 freezers had been sold for $810 each. Remittance was made by the consignee for the amount due after deducting a commission of 5%, advertising of $220, and total installation costs of $300 on the freezers sold. (Round answers to 0 decimal places, e.g. 5,275.) (a) Compute the inventory value of the units unsold in the hands of the consignee. Inventory value $ (b) Compute the profit for the consignor for the units sold. Profit on consignment sales $ (c) Compute the amount of cash that will be remitted by the consignee. Remittance from consignee $ On May 1,2020, Pina Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $947 in advance on May 15, 2020. Kickapoo pays Pina on May 15, 2020, and Pina delivers the mower (with cost of $592 ) on May 31,2020. (a) Prepare the journal entry on May 1, 2020, for Pina. (Credit account titles are automatically indented when the amount is entered. Do no indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b) Prepare the journal entry on May 15, 2020, for Pina. (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.) (c) Prepare the journal entry on May 31, 2020, for Pina. (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.)