Questions from Financial Reporting

Q: For each of the following independent situations, determine the point at

For each of the following independent situations, determine the point at which a contract exists and is subject to application of the five-step revenue recognition model by Amiel Corporation. 1. A reg...

Q: In 20X1, its first year of operations, Regal Department Store

In 20X1, its first year of operations, Regal Department Store sells $250,000 of gift certificates redeemable for store merchandise that expire one year after their issuance. With a high degree of cert...

Q: On October 1, 20X1, Bulls eye Company sold 250,

On October 1, 20X1, Bulls eye Company sold 250,000 gallons of diesel fuel to Schmidt Co. at $3 per gallon. On November 8, 20X1, 150,000 gallons were delivered; on December 27, 20X1. another 50,000 gal...

Q: Lemon Corporation and Morley, Inc., have entered into an arrangement

Lemon Corporation and Morley, Inc., have entered into an arrangement whereby Lemon will supply materials and 1,000 hours of its scientists’ time for a project to be undertaken at Morley’s research fac...

Q: Pogrund Vacation Properties sells real estate in Florida. Pogrund requires potential

Pogrund Vacation Properties sells real estate in Florida. Pogrund requires potential buyers who are interested in a property to remit a $10,000 deposit to show good faith before receiving detailed inf...

Q: Glick Corporation offers a 10% volume discount to customers who purchase

Glick Corporation offers a 10% volume discount to customers who purchase more than 10,000 units of its yoga mats in a calendar year. The volume discount applies to all units purchased in the year, not...

Q: On November 1, 20X1, Gerakos Corporation sold software and a

On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells the same software without technical support for $60,000. It s...

Q: In 20X1, Ginzel Corporation agreed to provide a client with 20

In 20X1, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its client’s key products for a total fee of $110,000. The fee was computed as $5,000 per report × 20 repo...

Q: Jerry’s Jellies sells one- and two-year mail-order

Jerry’s Jellies sells one- and two-year mail-order subscriptions for its jelly-of-the-month business. Subscriptions are collected in advance. An analysis of the recorded sales activi...

Q: The following balance sheet, which has some weaknesses in terminology and

The following balance sheet, which has some weaknesses in terminology and classification, has been prepared by an inexperienced accountant and submitted to you for review: Required: Prepare a classifi...