Problem 18-5 Ivanhoe Ranch & Shamrock is a distributor of ranch and farm equipme
ID: 2342739 • Letter: P
Question
Problem 18-5 Ivanhoe Ranch & Shamrock is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winch products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Ivanhoe's products. Pricing and cost information on three of Ivanhoe's most popular products are as follows. es. Most Standalone Selling Price (Cost) Item Mini-trencher Power fence hole auger1,300 Grain/hay dryer $3,600 ($2,000) (900) 13,800 (11,300) Respond to the requirements related to the following independent revenue arrangements for Ivanhoe Ranch & Shamrock.Explanation / Answer
Date
Particulars
Debit
Credit
Jan. 1, 2017
Accounts Receivable
39000
Sales Revenue
39000
(To Record Sales)
Jan. 1, 2017
Cost of Goods Sold
27000
Inventory
27000
(To record cost of goods sold)
Date
Particulars
Debit
Credit
Aug. 10, 2017
Accounts Receivable
57600
Sales Revenue
57600
(To Record Sales)
Aug. 10, 2017
Cost of Goods Sold
32000
Inventory
32000
(To record cost of goods sold)
Date
Particulars
Debit
Credit
Jun. 20, 2017
Accounts Receivable
44700
Installation payable
3000
Maintenance payable
1200
Sales Revenue
8940
Unearned Revenue
31560
(To record contract entered)
Jun. 20, 2017
Cash
8940
Accounts Receivable
8940
(To record payment received)
Oct. 1, 2017
Unearned Revenue
31560
Cash
35760
Sales Revenue
31560
Accounts Receivable
35760
(To record sales)
Oct. 1, 2017
Cost of Goods Sold
40500
Inventory
40500
(To record cost of goods sold)
Oct. 1, 2017
Installation payable
3000
Installation
3000
(To recognize installation expenses)
Date
Particulars
Debit
Credit
Entries for Ivanhoe:
Apr. 25, 2017
Consignment Inventory
81000
Inventory
81000
Jun. 30, 2017
Cash
70200
Commission
7800
Sales Revenue
78000
(To record payment received)
Jun. 30, 2017
Cost of Goods Sold
54000
Consignment Inventory
54000
(To record cost of goods sold)
Entries for Shamrock Depot:
Jun. 30, 2017
Cash
78000
Consignor
78000
(To record consignment sales)
Jun. 30, 2017
Consignor
78000
Commission
7800
Cash
70200
(To record payment)
Date
Particulars
Debit
Credit
Jan. 1, 2017
Accounts Receivable
39000
Sales Revenue
39000
(To Record Sales)
Jan. 1, 2017
Cost of Goods Sold
27000
Inventory
27000
(To record cost of goods sold)
Date
Particulars
Debit
Credit
Aug. 10, 2017
Accounts Receivable
57600
Sales Revenue
57600
(To Record Sales)
Aug. 10, 2017
Cost of Goods Sold
32000
Inventory
32000
(To record cost of goods sold)
Date
Particulars
Debit
Credit
Jun. 20, 2017
Accounts Receivable
44700
Installation payable
3000
Maintenance payable
1200
Sales Revenue
8940
Unearned Revenue
31560
(To record contract entered)
Jun. 20, 2017
Cash
8940
Accounts Receivable
8940
(To record payment received)
Oct. 1, 2017
Unearned Revenue
31560
Cash
35760
Sales Revenue
31560
Accounts Receivable
35760
(To record sales)
Oct. 1, 2017
Cost of Goods Sold
40500
Inventory
40500
(To record cost of goods sold)
Oct. 1, 2017
Installation payable
3000
Installation
3000
(To recognize installation expenses)
Date
Particulars
Debit
Credit
Entries for Ivanhoe:
Apr. 25, 2017
Consignment Inventory
81000
Inventory
81000
Jun. 30, 2017
Cash
70200
Commission
7800
Sales Revenue
78000
(To record payment received)
Jun. 30, 2017
Cost of Goods Sold
54000
Consignment Inventory
54000
(To record cost of goods sold)
Entries for Shamrock Depot:
Jun. 30, 2017
Cash
78000
Consignor
78000
(To record consignment sales)
Jun. 30, 2017
Consignor
78000
Commission
7800
Cash
70200
(To record payment)