October 25, 2016

Homework Help: Accounting

Posted by Leslie on Monday, February 23, 2009 at 9:20pm.


I am having trouble figuring out the below question. Can someone please provide some guidance.


Itís December 31, 2007 and you are about to close the firmís books for the year. Just as you think everything is done.

1.)The firmís Sales Manager some to you with 75 completed customer service orders (valued at $63,000) that his sales technicians had just turned in to him. They had performed this work in December but had forgotten to turn them in immediately after completing the work as required.
2.)The firmís Purchasing Manager comes to you and informs you that he had just negotiated a ďgreatí deal for the IT department. Sun Systems has agreed to sell the firm a new server for $1million. The original offer was for $1.25 million. The reduction reflected Sunís desire to capture the sale in 2006. The purchasing manager also tells you that no advance payment is required and that the server will be delivered on March 1, 2008

Explain how you will handle each of these transactions, including any required adjusting entries, based on established accounting principles.

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