Business
AccountingIntermediate Accounting: Reporting And AnalysisRix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for $1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of $200 and $400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer $1,400. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entries to recognize revenue related to each product in 2019.
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Rix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for $1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of $200 and $400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer $1,400. Required: 1. How should the transaction price be allocated among the products? 2. Prepare the journal entries to recognize revenue related to each product in 2019.

BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281
BuyFind

Intermediate Accounting: Reporting...

3rd Edition
James M. Wahlen + 2 others
Publisher: Cengage Learning
ISBN: 9781337788281

Solutions

Chapter
Section
Problem 1GI
Problem 2GI
Problem 3GI
Problem 4GI
Problem 5GI
Problem 6GI
Problem 7GI
Problem 8GI
Problem 9GI
Problem 10GI
Problem 11GI
Problem 12GI
Problem 13GI
Problem 14GI
Problem 15GI
Problem 16GI
Problem 17GI
Problem 18GI
Problem 19GI
Problem 20GI
Problem 21GI
Problem 22GI
Problem 23GI
Problem 24GI
Problem 25GI
Problem 1MC
Problem 2MC
Problem 3MC
Problem 4MC
Problem 5MC
Problem 6MC
Problem 7MC
Problem 9MC
Problem 10MC
Problem 1RE
Problem 2RE
Problem 3RE
Problem 4RE
Problem 5RE
Problem 6RE
Problem 7RE
Problem 8RE
Problem 9RE
Problem 10RE
Problem 11RE
Problem 12RE
Problem 13RE
Problem 14RE
Problem 15RE
Problem 16RE
Problem 17RE
Problem 18RE
Problem 19RE
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 1P
Problem 2P
Problem 3P
Problem 4P
Problem 5P
Problem 6P
Problem 7P
Problem 8P
Problem 9P
Problem 10P
Problem 11P
Problem 1C
Problem 2C
Problem 3C
Problem 4C
Problem 5C
Problem 6C
Problem 7C
Problem 8C
Problem 9C
Problem 10C
Chapter 17, Problem 19E
Textbook Problem

Rix Company sells home appliances and provides installation and service for its customers. On April 1, 2019, a customer purchased a dishwasher that Rix normally sells for $1,000. In addition, the customer purchased the installation service and a 3-year service contract, with stand-alone selling prices of $200 and $400, respectively. Because the customer purchased all three items as a bundle, Rix charged the customer $1,400.

Required:

  1. 1. How should the transaction price be allocated among the products?
  2. 2. Prepare the journal entries to recognize revenue related to each product in 2019.

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Chapter 17,
Problem 18E
Chapter 17,
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Chapter 17 Solutions

Intermediate Accounting: Reporting And Analysis
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Ch. 17 - What is the core principle of revenue recognition?Ch. 17 - How does the FASB define revenues?Ch. 17 - When a company recognizes revenue during a period,...Ch. 17 - Identify the five steps in the revenue recognition...Ch. 17 - What is a contract? What form can a contract take?Ch. 17 - What is the proper accounting for a wholly...Ch. 17 - If a seller enters into more than one contract...Ch. 17 - When should a seller account for a contract...Ch. 17 - What is a performance obligation? Do performance...Ch. 17 - How does the seller determine if a performance...
Ch. 17 - How should the seller treat promised goods and...Ch. 17 - Are upfront payments considered separate...Ch. 17 - What is the sellers main objective when...Ch. 17 - How should the seller measure revenue when it...Ch. 17 - How does the seller allocate the transaction price...Ch. 17 - What is the best evidence of a goods or services...Ch. 17 - If the standalone selling price of a good or...Ch. 17 - How does a seller satisfy a performance...Ch. 17 - What evidence would suggest that a performance...Ch. 17 - If the sellers performance creates on asset (e.g.,...Ch. 17 - Describe input and output methods used to measure...Ch. 17 - What information must a company disclose about its...Ch. 17 - What types of disclosures must companies make to...Ch. 17 - Under what circumstances does a company recognize...Ch. 17 - How does a company classify the following accounts...Ch. 17 - A company should recognize revenue when a. the...Ch. 17 - A contract between one or more parties creates: a....Ch. 17 - Morgan Company and its customer agree to modify...Ch. 17 - Chlorine Corp. has a contract to deliver pool...Ch. 17 - Orange Construction Company enters into a...Ch. 17 - On July 15, 2019, Matrix Corp. sells 20,000 snow...Ch. 17 - In accounting for a long-term construction...Ch. 17 - On April 1, 2019, Pine Construction Company...Ch. 17 - A customer obtains control over a good or service...Ch. 17 - CustomTee Inc. contracts with various customers to...Ch. 17 - Yankee Corp. agrees to provide Albany Company 24...Ch. 17 - Assume the same facts as in RE17-2. 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A...Ch. 17 - On August 1, 2019, Aiken Corp. enters into a...Ch. 17 - On January 1, 2019, Spring Fashions Inc. enters...Ch. 17 - On January 1, 2019, Loud Company enters into a...Ch. 17 - Assume the same facts as in El7-5. On July 1,...Ch. 17 - Assume the same facts as in E17-5 and ignore...Ch. 17 - Sanderson Construction Company provides a variety...Ch. 17 - GrillMaster Inc. sells an industry-leading line of...Ch. 17 - WaterWorld Inc. operates an aquarium and water...Ch. 17 - On January 1, 2019, Crockett Pharmaceuticals...Ch. 17 - Jonas Consulting enters into a contract to provide...Ch. 17 - On March 1, 2019, Elkhart enters into a new...Ch. 17 - On January 5, 2019, ShoeKing Corp. sells for cash...Ch. 17 - On January 1, 2019, Piper Company entered into an...Ch. 17 - On January 1, 2019, Fulton Inc. enters into a...Ch. 17 - On February 1, 2019, Silicon Rentals contracts...Ch. 17 - On December 1, 2019, AwakcAllNight Inc. sells...Ch. 17 - Rix Company sells home appliances and provides...Ch. 17 - Assume the same facts as in E17-19, except that...Ch. 17 - Crazy Computer Store sells a back-to-school bundle...Ch. 17 - Each of the following is an independent situation...Ch. 17 - In 2019, Tarlo Company agrees to construct a...Ch. 17 - King Construction Company began work on a contract...Ch. 17 - Koolman Construction Company began work on a...Ch. 17 - Newberg Construction Corp. contracted to construct...Ch. 17 - Each of the following independent situations...Ch. 17 - JustKitchens Inc. provides services to restaurants...Ch. 17 - On January 1, 2019, ForeRunner Inc. enters into a...Ch. 17 - January 2, 2019, TI enters into a contract with...Ch. 17 - Palantir Corp. sells specialized equipment to the...Ch. 17 - In 2019, Dreyer Corp. began construction work...Ch. 17 - Fender Construction Company receives a contract to...Ch. 17 - SoccerHawk Merchandise Inc. enters into a 6-month...Ch. 17 - Escargot Inc. is a 5-star restaurant in...Ch. 17 - Jorg is building an office building for Wilmington...Ch. 17 - Blackmon Company provides locator services to the...Ch. 17 - Prior to ASU 2014-09 changing the principles...Ch. 17 - The first step in the revenue recognition process...Ch. 17 - Lukes Gameday Company sells a package of goods and...Ch. 17 - One of the more difficult issues that companies...Ch. 17 - After the presentation of your report on the...Ch. 17 - On October 1, 2019, Grahams WeedFeed Inc. signs a...Ch. 17 - On January 1, 2019, Mopps Corp. agrees to provide...Ch. 17 - On November 1, 2019, Olivias Art Shoppe agreed to...Ch. 17 - Revenue for a company is recognized for accounting...Ch. 17 - Village Company is accounting for a long-term...

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