Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

A company separately sells home security equipment and 12 months of system monitoring service for $120 and $240, respectively. The company sells an equipment/monitoring bundle on January 1 for a total price of $270. The monitoring service begins immediately after the equipment is delivered and installed on January 1. Required: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 1–31.

Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $400. During October 2020, Value Dealership Inc. sold 30 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. When answering the following questions: Round each allocated transaction price to the nearest dollar. If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero). a. Ignoring the cost entries, record the journal entry in October 2020 for Value Dealership’s sale of vehicles with the associated maintenance contracts to customers.…

Allocating Transaction Price to Performance Obligations and Recording Sales On June 1, 2020, Forde Auto Manufacturer sells a 4-door sedan to a dealer for $102,000, which includes three years of maintenance. The standalone selling price of the vehicle is $102,000 and the standalone selling price of the maintenance contract is $6,800. In addition, Forde offered a $1,700 cash incentive (per vehicle purchased) to the dealer if the vehicle was purchased in the first week of June 2020. a. How should the transaction price be allocated among the performance obligation(s) for sales made in the first week of June?b. Prepare Forde’s journal entry to record the sale of vehicles for cash, assuming that dealers purchased 20 vehicles during the first week of June 2020. Ignore the cost of sales entries. Note: If a journal entry (or a line of the journal entry) isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero).Note: Round each allocated…

Answer 2

Question

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Answer 6

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

Answer 7

Chapter 6, Problem 15E

1.

To determine

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

Answer 8

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

Answer 9

2.

To determine

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

Answer 10

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Answer 11

3.

To determine

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 6 - Prob. 1Q Ch. 6 - If a Chicago-based company ships goods on...Ch. 6 - Define goods available for sale. How does it...Ch. 6 - Define beginning inventory and ending inventory.Ch. 6 - Describe how transportation costs to obtain...Ch. 6 - What is the main distinction between perpetual and...Ch. 6 - Why is a physical count of inventory necessary in...Ch. 6 - What is the difference between FOB shipping point...Ch. 6 - Describe in words the journal entries that are...Ch. 6 - What is the distinction between Sales Returns and...

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

Solution Summary: The author calculates the dollar of revenue that should be allocated to the equipment for each bundled sale.

Concept explainers

Calculate the dollar of revenue that should be allocated to the equipment for each bundled sale.

Calculate the dollar of revenue that should be allocated to the service for each bundled sale.

Ascertain the dollars of sales revenue and service revenue from January 1 bundled sale that should be reported in the income statement for the period January 1-31.

Want to see the full answer?

Chapter 6 Solutions