Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. hodge technology ltd signs a contract on 1 july 20

Hodge Technology Ltd signs a contract on 1 July 2020 with PNG Telecom Ltd to...

80.2K

Verified Solution

Question

Accounting

Hodge Technology Ltd signs a contract on 1 July 2020 with PNG Telecom Ltd to provide and service switching equipment for a new exchange. The contract provides for 4 annual payments (in arreas) of $100,000 on 30 June each year. If sold separately, the equipment would have a sale price of $300,000 and 4 year service contract would cost $100,000. The equipment is shipped immediately and if PNG Telecom borrowed the money from the local bank the interest rate would be 8% which indicates low credit risk. Hodge has a 30 June year end.

Prepare the journal entries for hodge to record on:

1 July 2020

30 June 2021

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

1. Write the following complex numbers in polar form. a. 6 + ?2 b. 10 + ?0 c....

Advance Math
Q

A current of 10 A is passing through an aluminium wire of cross sectional area...

Physics
Q

Find the coordinates of the vertex of the following parabola algebraically. Write your answer as...

Basic Math
Q

Perform the following division and write the quotient in trigonometric form. Write the magnitude in...

Basic Math
Q

In a survey conducted by a reputable marketing agency 251 of 1000 adults 19 years...

Statistics
Q

Tutorial Exercise Customers arrive at a movie theater at the advertised movie time only to...

Statistics
Q

Solve the inequality and write your answer in interval notation 20x4 1 11x

Statistics
Q

Branson paid $535,300 cash for all of the outstanding common stock of Wolfpack, Inc., on...

Accounting
Q

QS 12-5 (Algo) Indirect: Computing cash flows from operations LO P2 For each separate company,...

Accounting
Q

An oil field is purchased for $6,000,000. No salvage value is expected. The estimated recoverable...

Accounting
Q

In 2021, Tom and Amanda Jackson (married filing jointly have $272,000 of taxable income before...

Accounting
Q

When a physical inventory count is not possible or cost effective, an estimate of inventory...

Accounting