Question 4 20 marks required prepare all journal

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Question 4 (20 marks) REQUIRED: Prepare all journal entries that are required in each of the following situations under IFRS . No explanation is necessary. Situations: a. Linda the Masseur offers customers $10 off of the massage service (regular price $70) for every new customer’s return visit within the next month. For the month of September, she has performed 30 massages, of which 10 were new customers. Half of the customers paid cash and the remainder on credit. On average, she expects 40% of her new customers would come back for the second visit next month. It turned out 5 out of the 10 new customers returned in October and they paid cash for their visit. Prepare the journal entries for Linda on September 30 th and October 31 st . b. Dong Young Inc. shipped $10,000 of Korea facial masks to Dr. D Inc. on consignment for sale in Montreal on September 2 nd . Dr. D Inc. paid $1,000 of advertising, which was reimbursable by Dong Young Inc at the end of the month. Dr. D Inc. also charges 15% commission on all goods sold. In the month of September, $7,000 of the $10,000 facial masks are sold, and sales amounted to $21,000. There was no receipt of cash by Dong Young Inc. yet as of September 30 th . Prepare the journal entries for Dong Young on September 2 nd and September 30 th . c. Amanda contracted Zach Construction Inc. to build a greenhouse in her backyard for a fixed price of $100,000 from September to November. Billings are scheduled for $20,000 on September 30 th , and $40,000 for both October 31 st and November 30 th . The project started on September 3 rd and as of the end of September, the actual cost incurred to date amounted to $15,000. Zach Construction Inc. expects the additional costs to completion for October and November amount to $45,000. Zach used the percentage-of-completion method (cost-to-cost approach) to account for its long-term contract monthly. On September 30 th , Zach also collected $13,000 of cash from Amanda. Prepare the journal entries for Zach on September 30 th , assuming no entry has been recorded so far. Date Account Name Debit Credit a.
12 Date Account Name Debit Credit b. Date Account Name Debit Credit c. ********* END OF MIDTERM **********
13 Question 1 PART A a. Concept: Monetary Unit Assumption Explanation: Wrong. The monetary unit assumption assumes the unit is stable and the Canadian company reports its operations in CDN. Vadim was correct to translate the COGS into CDN but was incorrect to assume a fixed cost for each CD based on this concept.

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