Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. oriole company sells outdoor grilling products, pr

Oriole Company sells outdoor grilling products, providing gas and charcoal grills, accessories, and installation services for custom...

90.2K

Verified Solution

Question

Accounting

Oriole Company sells outdoor grilling products, providing gasand charcoal grills, accessories, and installation services forcustom patio grilling stations. Respond to the requirements relatedto the following independent revenue arrangements for Orioleproducts and services. Oriole offers contract MG100 which iscomprised of a free-standing gas grill for small patio use plusinstallation to a customer’s gas line for a total price $1,150. Ona standalone basis, the grill sells for $800 (cost $400), andOriole estimates that the fair value of the installation service(based on cost-plus estimation) is $200. Oriole signed 30 MG100contracts on May 30, 2021, and customers paid the contract price incash. The grills were delivered and installed on June 15, 2021.

1- Prepare journal entries for Oriole for MG100 in May and June2021

2-Oriole sells its specialty combination gas/wood-fired grillsto local restaurants. Each grill is sold for $1,600 (cost $610) oncredit with terms 3/20, net/60. Prepare the journal entries for thesale of 35 grills on August 1, 2021, and upon payment, assuming thecustomer paid on (1) August 20, 2021, and (2) September 29, 2021.Assume the company records sales net.

Answer & Explanation Solved by verified expert
3.6 Ratings (310 Votes)
1 Total revenue 1150 30 34500 Fair value of grills 800 30 24000 Fair value of installation fee 200 30 6000 Total Fair value 24000 6000 30000 Allocation Equipment 34500 2400030000 27600 Installation    See Answer
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

Swayback or an anterior curvature of the lumbar spine is known as A scoliosis B...

Biology
Q

capacitance C for an isolated conducting sphere of radius a is given by 4 a...

Physics
Q

Gail lives in Kentucky and pays 6 in sales tax She just bought 165 in...

Geometry
Q

11 3 of the sequence and are the first three terms of an arithmetic sequence...

Calculus
Q

16 Evaluate if x 10

Algebra
Q

Lubricants, Inc., produces a special kind of grease that is widely used by race car...

Accounting
Q

Suppose the comparative balance sheets of Larkspur, Inc. are presented here. LARKSPUR, INC. Condensed Balance...

Accounting
Q

Intelligent Toys, Inc ("ITI") is a well establish toys trading company which adopts the periodic...

Accounting
Q

A. Differentiate between business risk and credit risk. (2 marks) B.Differentiate between risk and uncertainty....

Accounting
Q

ackboard ining Time: 59 minutes, 03 seconds. tion Completion Status: Moving to another question...

Accounting
Q

Exercise 11-2 (Algo) Dropping or Retaining a Segment[LO11-2) The Regal Cycle Company manufactures three types...

Accounting
Q

MUST SHOW WORK!! THANK YOU!! The Coca-Cola Company's last dividend was $1.50. Its dividend...

Finance