For the Line 14, how to do with that? Or just leave blank???? Note payable Licen
ID: 2552310 • Letter: F
Question
For the Line 14, how to do with that? Or just leave blank????
Note payable Licensing agreement Machin Accounts Accumulated de Number Date Cash Inventory receivable ery preciation Trademark Accounts payable bank 34,000,000 an 2-Jan -Jan 4 10-Jan 5 20-Feb 6 23-Feb 730-Jun 6,000,000 -3,000,000 -15,000,000 (2,000,000) -6,000,000 -400,000 6,000,000 3,000,000 5,000,000 2,000,000 6,000,000 6,000,0 Lu 9 Various 0 Various I Various 12 Various 13 Various 4 13-Dec 15 31-Dec 16 Various 17 31-Dec 18 31-Dec 931-Dec 20 31-Dec 3,000,000 3,000,000 (2,000,000) 3,300,000 2,000,000 3.400,000 9,600,000 300,000 200,000 2,750,000 -3,400,000 -8,100,000 600,000 19,600,000 900,0009,600,000 250,000 7,000,000 (3,400,000)5,400,000 3,000,000 6,000,00Explanation / Answer
14. On December 13, BreatheScreen signed a contract with the organizer of the
“International Fair for Medical Devices 2014” (IFMD) for 1,000 units of BreatheScreen,
with the intention of giving them away to health care professionals visiting the trade
show. The selling price specified in the contract is $500 per unit. BreatheScreen This document is authorized for use only in Financial Statement Analysis - 25 July 2016 by Dr Ding Ding, SIM University from July 2016 to September 2016. BreatheScreen Inc.: Transaction Analysis and Financial Statements A-216 p. 3 promised to deliver the units on March 10, 2014. IFMD had up to 30 days after delivery
to pay for the devices.
A contract has been signed but there is no cash transaction or any promissory note or any other asset exchange. So, there will not be any journal entry for this contract during this year. Signing a contract does not create an asset or liability at the time of signing, so there won't be any accounting entry on December 13. BreatheScreen does not have a sale of 1000 units nor it does have any account receivable from IFMD. So, the entry will be recorded at the time of delivery next year on March 10, 2014.