Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Ivanhoe. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.) Performance Obligation When? How much? Deliver goods choose a transaction date January 2, 2020March 1, 2020June 18, 2020 $enter a dollar amount rounded to 0 decimal places Installation choose a transaction date January 2, 2020March 1, 2020June 18, 2020 enter a dollar amount rounded to 0 decimal places Total $enter a total amount rounded to 0 decimal places Prepare the journal entries for Ivanhoe on January 2, March 1, and June 18, 2020
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Ivanhoe. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.) Performance Obligation When? How much? Deliver goods choose a transaction date January 2, 2020March 1, 2020June 18, 2020 $enter a dollar amount rounded to 0 decimal places Installation choose a transaction date January 2, 2020March 1, 2020June 18, 2020 enter a dollar amount rounded to 0 decimal places Total $enter a total amount rounded to 0 decimal places Prepare the journal entries for Ivanhoe on January 2, March 1, and June 18, 2020
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 6P
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Ivanhoe Company sells goods that cost $250,000 to Bridgeport Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Bridgeport Company pays Ivanhoe $261,000 upon delivery of the goods and the balance at the completion of the installation.
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Ivanhoe. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
| Performance Obligation | When? | How much? | ||
|---|---|---|---|---|
|
Deliver goods
|
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | $enter a dollar amount rounded to 0 decimal places | ||
|
Installation
|
choose a transaction date January 2, 2020March 1, 2020June 18, 2020 | enter a dollar amount rounded to 0 decimal places | ||
|
Total
|
$enter a total amount rounded to 0 decimal places |
Prepare the journal entries for Ivanhoe on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
|
Account Titles and Explanation
|
Debit
|
Credit
|
||
|---|---|---|---|---|
|
choose a transaction date June 18, 2020January 2, 2020March 1, 2020
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
||
|
enter an account title to record sales
|
enter a debit amount
|
enter a credit amount
|
||
| (To record sales) | ||||
|
choose a transaction date March 1, 2020June 18, 2020January 2, 2020
|
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title to record cost of goods sold
|
enter a debit amount
|
enter a credit amount
|
||
| (To record cost of goods sold) | ||||
|
choose a transaction date January 2, 2020March 1, 2020June 18, 2020
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
|
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
||
|
enter an account title
|
enter a debit amount
|
enter a credit amount
|
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