How many performance obligations exist in this contract? a. 0 b. 1 c. 2 d. 3 2. AntonTech should recognize revenue for the right to operate a Techshop? a. No transaction b. No revenue c. Point in time d. Over time 3. AntonTech should recognize revenue for the equipment?
Q: Which of the following accounts is included in the Post-Closing Trial Balance? O Allowance for Bad…
A: Solution 1: Post closing trial balance is prepared after closing the temporary accounts in income…
Q: narginal revenue produc
A: A bag of fertilizer has marginal revenue of product $ 100 and its current price is $ 150
Q: Problem 2 The Magnolia Corporation has a cycle time of 1.5 days, uses a raw and in process account,…
A: Answer- Working Note : 1. Material Content of FG - Purchases 444,000 Mat in RIP beg…
Q: Exercise 8-24 (Algo) Controllable and volume variances LO P4 Shaw Incorporated began this period…
A: Volume Variance is a way to determine whether or not there is a discrepancy between the actual…
Q: Example 62(a). A manufacturing firm purchases 2000 units of a particular item per year at a unit…
A: Optimum Order Quantity=2×Annual Demand×Ordering Cost per orderCarrying Cost per unit per annum
Q: he next fiscal year. Expenditures—Capital…
A: A journal entry is the act of recording or keeping track of any financial or non-financial action.…
Q: Carol contributes property with a $10,000 basis and a $60,000 book value to a partnership for a 25%…
A: In this question, we will find out the Carol's total allocated portion of this liability.
Q: LAMPERT ROOFING Worksheet For the Month Ended March 31, 2022 Account Titles Trial…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Consider the two mutually exclusive investment projects given in the table below for which MARR =…
A: MARR- 15% Project A Project B 0 $ (4,000) $ (9,500) 1 $ 2,000 $…
Q: The total liabilities of ABC Company for the period ending December 31, 202 amounted to P300,000.…
A: The liabilities are the amount due to be paid to the outsiders including creditors, suppliers, etc.
Q: The "Owner, Capital" ending balance will NOT appear on the: Statement of Financial Position…
A: Statement of Owner's Equity - Statement of owner's equity includes amount contributed by the owner…
Q: Provide a description of how the job order costing and process costing methods are applied to…
A: Cost accounting is required for obtaining cost sheet. Cost sheet is prepared to obtain cost of a…
Q: Bonakid Inc. has decided to invest P10,000,000 in a new headquarters and needs to determine the best…
A: Calculation of Degree of Financial Leverage Degree of Financial Leverage = Earnings before interest…
Q: Luebke Incorporated has provided the following data for the month of November. The balance in the…
A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a…
Q: Dakery, Consider costs. First there is a cost of $125 for quality printing of 500 t
A: An informative foldable template or pamphlet which contains a particular set of information is…
Q: The 2021 comparative balance sheet and income statement of Auga Company Ltd, have just been…
A: Cash flow statement includes: Cash flows from operating activities Cash flows from investing…
Q: - When is the P25,000 considered to be earned?
A: Accrual basis accounting is the method of recording the business transactions on the basis of when…
Q: At the end of the first year of operations, Majestic Company had accounts receivable of P6,000,000,…
A: The allowance for doubtful accounts represents the uncollectible amount of sales made to customers…
Q: The following are the selected ledger balances taken from the books of ABC Company for the year…
A: Total assets include both Current assets and Non-current assets. Current assets: Current assets are…
Q: The following account balances were taken from the books of ABC Company for the month of March.…
A: Salaries payable is current liability which should be reported under liabilities section of balance…
Q: stock plus land with a 5,848. Auto Corp's la 160 prior to the exch s had a basis of $2,19:
A: The answer has been mentioned below.
Q: rza Corporation has two production departments, Casting and Customizing. The company uses a…
A: The total cost of production of a good comprises the total fixed cost of production and the total…
Q: The following information is also available: Beginning balance of Accounts Receivable P 500,000 Net…
A: >Bad Debt Expense is recorded using two methods: #1: Direct write off method: Expense is…
Q: Question 1 The standard accounting equation Assets - Liabilities = Owner's Equity allows the…
A: Solution 1: True, The standard accounting equation Assets - Liabilities = Owner's Equity allows the…
Q: M Peru's company. Test bor- produce 340 tons per year of car period. d hydrated zircon gemstones.…
A: Net present value is the net present worth of a project computed by deducting the initial cash…
Q: Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The…
A: Contribution margin per unit=Sales price per unit-Variable cost per unit
Q: Required information [The following information applies to the questions displayed below.] Alaskan…
A: Journal entry is the first step to record the transactions in the books of account. If bonds issued…
Q: You have been asked by a client to review the records of Sheffield Company, a small manufacturer of…
A: Introduction Accounting changes and error analysis is carried out at the end of each accounting…
Q: Allowance for Bad 12,600 Prepaid Advertising 12,000 Debts Service Income 500,000 Salaries Expense…
A: The financial statements of the business includes the income statement and balance sheet of the…
Q: Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as…
A: Wages When a payment is made for the work done to an employee by the employer is known as a wage…
Q: Assume the following: Purchases of raw materials $ 38,000 Beginning raw materials inventory $…
A: Material refers to the item that is important for the manufacturing of a product and without which…
Q: Assume a parent company acquired its subsidiary on January 1, 2016. On January 1, 2016, the…
A: When a company holds shares in another company then the income needs to be consolidated. The holder…
Q: nterest Payable 3,200 Accounts Payable 140,800 Accrued Salaries Expense 35,000 Accrued Interest…
A: Solution A liability is the the amount that is owed by the company not owned. These includes…
Q: Question 12: In general, when the number of withholding allowances increases for an employee who has…
A: For employees, withholding is the amount of federal income tax withheld from your paycheck. The…
Q: The total assets of the Company are $81000 and its owner's equity is $61000. What is the amount of…
A: Formula: Accounting equation : Assets = Liabilities + Owners equity
Q: During a recent week, Charlie Scott works 37 regular hours. He earns $9/hour and contributes 3% of…
A: Taxable income is the portion of your gross income that the IRS deems subject to taxes. It consists…
Q: Paid $43 for an oil change. Paid $405 to install special shelving units, which increase the…
A: Journal entry: A journal entry is the act of recording or keeping track of any financial or…
Q: 25. $ You plan to start your own business in 5 years once you graduate from college and get…
A: Plans to Start Business After 5 year Plant to Save money Per Month $ 250.00 Duration…
Q: Donovan, the president of Solomon Enterprises, is considering two investment opportunities. Because…
A: ln the capital budgeting decisions which are comes on which long term decisions of form regarding…
Q: In June 2021, A.B. Malinaw established a photography business. Transactions that transpired during…
A: Transaction No. Assets = Liabilities + Equity Cash Accounts Receivable Photo…
Q: statement data, what is the debt to assets rati 2$ Current assets Net income 21600 44900…
A: The ratio analysis helps to analyse the financial statements of the business. The debt to assets…
Q: How much is the net income for the year 2021?
A: Answer:
Q: ansactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash flows from Operating activities includes all those cash transactions which flows from…
Q: At the end of May 2016 there was in stock 1,200 units of Product PZ25 at Jamaica Co Ltd, valued at…
A:
Q: Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's…
A: The company commits to provide the monthly income once the employee retire in a defined benefit…
Q: Prepare a budget report based on flexible budget data to help Joe -хpenses.)
A: In this question, we have to calculate the budget report for the swift company clothing department.…
Q: ng is a list of various costs incurred in producing replacement automobile parts. With respect to…
A: Fixed cost: Cost that is a fixed per period is called Fixed cost. Fixed cost remains constant for…
Q: Using the equity method for reporting strategic investments, how does investment revenue and…
A: Equity method is an accounting method to compute the investment value in ventures. Under this…
Q: On February 3, the billing date, Carol Ann Bluesky had a balance due of $128.66 on her credit card.…
A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…
Q: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVS), the Conquis-…
A: The contribution margin can be stated on a gross or per-unit basis. It shows the additional money…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching. VolleyElite charges customers 500 per year for access to its facilities and programs. In addition, VolleyElite charges each customer a 100 registration fee. The fee is not refundable and must be paid at the initiation of the contract. Should the registration fee be considered a separate performance obligation from the yearly dues?Enterprise Solutions Inc. licenses its productivity software to Blackmon Company for 100,000, payable at contract inception. Enterprise agrees to provide semiannual software upgrades over the 5-year length of the contract to enable Blackmon to benefit from any technological advancement. Enterprise concludes that the software license is not distinct from the promised upgrades. What journal entries are necessary for Enterprise to account for this transaction?JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2019, Just-Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of 10,000 per year. The restaurant chain pays the total contract fee on January 2, 2019. JustKitchenss stand-alone selling price is also 10,000 per year. After 2 years, the restaurant asks to modify the contract. On January 2, 2021, the companies agree to reduce the fee for the third year to 9,000 in exchange for extending the contract for 2 additional years at a fee of 11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service. The 11,000 fee for the additional years is the same as JustKitchenss stand-alone price. Required: 1. How should JustKitchens account for the contract modification? 2. Prepare the journal entry that JustKitchens would make over the life of the contract.
- 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?Consider each of the following scenarios: a. A seller orally agrees with one of its best customers to deliver goods in exchange for 10,000. While the sellers practice is to obtain a written sales agreement, the seller delivered these goods to the customer without a written agreement due to the customers urgent need. b. A seller agrees to provide accounting services to a customer for the next year in exchange for 40,000. While the two parties are negotiating the terms of the agreement and the specific services to be performed, the seller begins to perform some services as a gesture of good faith. c. A seller has a written agreement to deliver goods to a customer for 50 per unit. The price will drop to 45 per unit if the customer purchases more than 2,000 units per month. d. A seller had a written agreement and provided custodial services to a customer for 2,000 per month in a previous year. The contract expired on December 31, 2019. During negotiations for a new contract in January 2020, custodial services were provided at the previous monthly rate and paid for by the buyer. The seller and the customer agree to a new contract on February 1, 2020. The seller is concerned whether a contract existed in January 2020 and whether revenue can be recognized. Required: 1. Determine if a contract exists for each of the scenarios. 2. If it is determined that a contract exists but the seller believes it is probable that it will not collect the expected consideration, how does this affect the sellers ability to recognize revenue?Yankee Corp. agrees to provide Albany Company 24 months of coaching services. The contract sets the price at 4,000 per month, which is the normal stand-alone price that Yankee charges. After 16 months, Yankee and Albany agree to modify the contract. Yankee reduces the fee for the 8 remaining months to 3,800 per month, and Albany agrees to a 24-month extension at a cost of 3,600 per month. At the time that the contract is modified, Yankee is charging other customers 3,750 per month for the coaching service. Should Yankee and Albany treat the modification as a separate contract?
- Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere. 4. AntonTech should recognize revenue for the training? a. No transaction b. No revenue c. Point in Time d. Over Time 5. What if AntonTech also charges franchisees an additional fee for ongoing services provided by the company, the additional fee be recognize as revenue? a. No transaction b. No revenue c. Point in Time d. Over TimeSAPPHIRE CO. charges new franchisees an initial fee of P5,000,000. Of this amount, P2,000,000 is payable in cash when the agreement is signed, and the remainder is to be paid in three equal annual installments which are evidenced by an interest-bearing promissory note. In consideration therefore, SAPPHIRE CO. will assist in locating the business site, conduct a market study to estimate earnings potential, supervise construction of a building, and provide initial training to employees. On December 3, 2021, Sapphire Co. entered into a franchising agreement with EMERALD, INC. by the end of the year, SAPPHIRE CO. has completed about 25% of the initial services at a cost of P300,000 and it has ascertained that collection of the notes is reasonably assured. For 2021, SAPPHIRE CO. should recognized franchise revenue of:A. 5,000,000 C. 1,700,000B. 2,000,000Integrity Pizza charges initial franchise fee of P500,000 for the right to operate as a franchisee of Integrity Pizza. Of this amount, P100,000 is payable when the arrangement is signed and the balance is payable in five annual payments of P80,000 each. In return for the initial franchise fee, the franchisor will help locate the site, negotiate the lease or purchase of the site, supervise the construction activity, and provide the bookkeeping services. The credit rating of the franchisee indicates that money can be borrowed at 8%. (Round off present value factor to two decimal places.) How much is the contract liability at the inception of the contract?
- Manong Nilaga, a renowned franchisor under McJabi Group of Companies, sells franchise arrangements to individual businessmen. Under a franchise agreement, Manong Nilaga receives P10,000,000 in exchange for satisfying the following separate performance obligations: franchisees have a ten-year right to operate as a Manong Nilaga restaurant. franchisor submits a feasibility study for the strategic location of the business franchisees receive initial training and certification, and franchisees receive necessary specialized equipment. The stand-alone selling price are P500,000 for the initial training and certification, and P1,500,000 for the specialized equipment. The feasibility study usually costs P200,000 for Manong Nilaga. The franchisor expects a normal profit of 25% on most of its services. The franchisor also estimates the stand-alone selling price of the ten-year right to operate as a Manong Nilaga restaurant using the residual approach. Manong Nilaga received P2,000,000 on…Fred Esquillo, Inc charges an initial franchise fee of P90,000 broken down as follows:Rights to trade name, market area, and proprietary know-how . . . . . . . . . P40,000Training services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,500Equipment (cost of P10,800) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,500Total initial franchise fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . P90,000Upon signing of the agreement, a payment of P40,000 is due. Thereafter, two annual payments ofP30,000 are required. The credit rating of the franchisee is such that it would have to pay interest of8% to borrow money. The franchise agreement is signed on August 1. 20x7. Assuming that no futureservices are required by the franchisor once the franchise begins operations, the entry on November1, 20x7 would include-A credit to Unearned Franchise Revenue for P40,000.-A debit to…Accurate Company charges its new franchisees an initial franchise fee of P2,500,000. Of this amount, P1,000,000 is payable in cash when the agreement is signed, and the remainder is to be paid in three equal annual installments which are evidenced by 12% interest-bearing note. In consideration therefore, Accurate will assist in locating business site, conduct a market study to estimate earnings potential, supervise construction of a building, and provide initial training to employees. On December 1, 2021, Accurate entered into a franchising agreement with a franchisee. The franchise outlet was opened on January 15, 2022. Accurate had incurred a cost of P800,000 related to the franchise and it has ascertained that the collection of the note is reasonably assured.1. How much is the Franchise Revenue to be recognized in 2021? 2. How much is the Revenue to be recognized in 2022?
