On March 1, 2024, Gold Examiner receives $139,000 from a local bank and promises to deliver 94 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third- party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount. View transaction list No 1 View journal entry worksheet Date March 01, 2024 General Journal Cash Deferred revenue - gold bars Deferred revenue - insurance Debit 139,000 Credit Ⓒ
On March 1, 2024, Gold Examiner receives $139,000 from a local bank and promises to deliver 94 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third- party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to the nearest whole dollar amount. View transaction list No 1 View journal entry worksheet Date March 01, 2024 General Journal Cash Deferred revenue - gold bars Deferred revenue - insurance Debit 139,000 Credit Ⓒ
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 15E: On January 1, 2019, Piper Company entered into an agreement with Save-Mart to sell its most popular...
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Transcribed Image Text:On March 1, 2024, Gold Examiner receives $139,000 from a local bank and promises to deliver 94 units of certified 1-ounce gold bars
on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-
party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in
transit. The stand-alone price of a gold bar is $1,410 per unit, and Gold Examiner estimates the stand-alone price of the replacement
insurance service to be $90 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank
occurred on April 1.
Required:
1. How many performance obligations are in this contract?
2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1.
Complete this question by entering your answers in the tabs below.
Req 1
Req 2 to 4
Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the
first account field. Round your final answers to the nearest whole dollar amount.
View transaction list View journal entry worksheet
No
1
Date
March 01, 2024
General Journal
Cash
Deferred revenue - gold bars
Deferred revenue - insurance
Debit
139,000
Credit
Ⓡ
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