17) Meyer & smith is a full-service company. They provide equipment, installation services as well as a full year of technical support. Customers can purchase any product or services separately or as a bundles package. Container Corporation purchase computer equipment, installation, and 12 months of technical support for a total cost of $144,000 on March 15, 2024. Estimated standalone selling price of the equipment, installation and technical support are $90,000, $60,000, and $30,000 respectively. The journal entry to record the transaction on March 15,2024 will include a A) credit to service revenue of $60,000 B) credit to Sales Revenue for $144,000 INCORRECT C) credit to unearned service revenue $ 24,000 D) debit to unearned service revenue

17) Meyer & smith is a full-service company. They provide equipment, installation services as well as a full year of technical support. Customers can purchase any product or services separately or as a bundles package. Container Corporation purchase computer equipment, installation, and 12 months of technical support for a total cost of $144,000 on March 15, 2024. Estimated standalone selling price of the equipment, installation and technical support are $90,000, $60,000, and $30,000 respectively. The journal entry to record the transaction on March 15,2024 will include a A) credit to service revenue of $60,000 B) credit to Sales Revenue for $144,000 INCORRECT C) credit to unearned service revenue $ 24,000 D) debit to unearned service revenue

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter5: Introduction To Business Expenses

Section: Chapter Questions

Problem 63P

See similar textbooks

Similar questions

On March 1, 2019, Elkhart enters into a new contract to build a specialized warehouse for 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the warehouse is usable by November 30, 2019, Elkhart will receive a bonus of 600,000. For every week after November 30 that the warehouse is not usable, the bonus will decrease by 150,000. Elkhart provides the following completion schedule: Required: 1. Assume that Elkhart uses the expected value approach. What amount should Elkhart use for the transaction price? 2. Assume that Elkhart uses the most likely amount approach. What amount should Elkhart use for the transaction price? 3. Next Level What is the purpose of assessing whether a constraint on the variable consideration exists?
On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.
Grummet Company is acquiring a new wood lathe with a cash purchase price of $80,000. The Wood Master Industries (the manufacturer) has agreed to accept $23,500 at the end of each of the next 4 years. Based on this deal, how much interest will Grummet pay over the life of the loan? A. $94,000 B. $80,000 C. $23,500 D. $14,000
Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.