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Lake Company receives nonrefundable advance payments with special orders for containers constructed to customer specifications. What is the related information for 2024?

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Final answer:

For Lake Company in 2024, the related information for nonrefundable advance payments with special orders for containers constructed to customer specifications includes recording the payments as a liability, adjusting the liability based on completion, and providing disclosures.

Step-by-step explanation:

In 2024, for Lake Company, the related information for nonrefundable advance payments received with special orders for containers constructed to customer specifications would include:



  1. Recording the advance payments received as a liability on the company's balance sheet.
  2. Adjusting the liability by recognizing revenue as the containers are completed and delivered to the customers based on a percentage of completion.
  3. Providing disclosures in the footnotes of the financial statements regarding the significant terms and conditions of the advance payments and the expected timing of revenue recognition.

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