Sarjit Systems sold software to a customer for $80,000. As part of the contract, Sarjit promises to provide "free" technical support overthe next six months. Sarjit sells the same software without technical support for $70,000 and a stand-alone six-month technicalsupport contract for $30,000, so these products would sell for $100,000 if sold separately. Sarjit delivered the software and receivedcash of $80,000 on May 15. Allocate the transaction price to software and technical support, and determine the financial statementseffects of the transaction on May 15.Complete this question by entering your answers in the tabs below.FinancialStatementsEffectsDetermine the financial statements effects of the transaction on May 15.AllocationCashAssets$80,000Balance SheetLiabilitiesStockholders' EquityCommon Stock Retained Earnings< AllocationRevenuesFinancial Statements Effects >Income StatementExpensesNet Income

The transaction price is the price of the software and technical support. Software price will be…

ntering your answers in the tabs below. its effects of the transaction on May 15. Balance Sheet Liabilities 80,000 Stockholders' Equity Common Stock Retained Earnings Revenues Income Statement Expenses

ntering your answers in the tabs below. its effects of the transaction on May 15. Balance Sheet Liabilities 80,000 Stockholders' Equity Common Stock Retained Earnings Revenues Income Statement Expenses

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 19E: Rix Company sells home appliances and provides installation and service for its customers. On April...

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