UniTel Co provides a bundled-service package to B. Mann for $4,200 upfront. The service package includes upfront advice, 'on-call' advice, and database access for a 1-year period. If each service was sold separately to B. Mann the fees would be: Up-front advice: $900 On-call advice: $1,800 Database access: $2,700 Using the relative fair value approach, what is the amount of revenue recognised in relation to the on-call advice is (rounded to the nearest whole dollar): $700 $1,400 $1,800 $2,100
Q: Personal budget At the beginning of the school year, Craig Kovar decided to prepare a cash budget…
A: A cash budget can provide individuals and organizations with greater financial clarity and control,…
Q: Mobley Corp. has 9,468,000 shares of common stock and 504,000 shares of preferred stock outstanding…
A: Earnings per share (EPS) is a measure of a company's profitability that shows how much of its net…
Q: On December 31, 2020, Sunland Company leased a truck from K Co.. The lease calls for $41,934 equal…
A: Answer:- Journal entry:- Journal entry records the transactions of the business entity during the…
Q: Required information Problem 18-6A (Static) Break-even analysis LO P2 [The following information…
A: Lets understand the basics. Contribution Margin: It is defined as the difference between the sales…
Q: A. Determine the surplus or deficit of junior Ltd's define benefit plan at 31st December 2018 B.…
A: The anticipated present value of all future pension benefits that employees would get as of a…
Q: Grand River Company produces a high-quality insulation material that passes through two production…
A: EQUIVALENT UNITS OF PRODUCTION Equivalent Production is represents the production of a process in…
Q: A business has the following balances at the beginning of the year: Accounts receivable: 167500…
A: The allowance for doubtful accounts has the credit balance. The accounts receivables has the debit…
Q: Required information Use the following information for the Exercises 8-10 below. (Algo) [The…
A: FIFO Method :— It is one of the method of inventory valuation in which it is assumed that old…
Q: (A) Under the percentage-of-sales method, the uncollectible account expense would be: a. $3,000 b. $…
A: The amount of accounts receivable that a company may be unable to collect from its customers is…
Q: I am writing to seek advice from you with regards to numerous accounting issues. As you know most of…
A: The answer to the question is given below
Q: To stimulate the sales of its Alladin breakfast cereal, Sandhill Company places 1 coupon in each…
A: A company's financial transactions are documented in journal entries, which are then utilised to…
Q: Reyes Corporation applies overhead using a normal costing approach based on machine-hours. Budgeted…
A: Overheads: These implies to the business expenses incurred in relation to the day to day or ongoing…
Q: The following events occurred for Johnson Company: a. Received investment of $39,000 cash by…
A: ACCOUNTING EQUATION Accounting Equation is a Financial Accounting Technique which represents the…
Q: 0,000 Units sold 17,000 Units in ending inventory 3,000 Variable costs per unit: Direct materials $…
A: Answer : 1. Unit product cost using absorption costing : Direct material $180 Direct labor $320…
Q: What is the annual effective interest rate on the bonds?
A: Given Information: Cash Interest: $7,000 Outstanding balance at the beginning of the year: $207,020…
Q: Required: Prepare journals, ledger and whorksheet MAY 2 UP opened a service shop, she deposited P…
A: An entry in a journal or diary is a written account of a particular experience, observation, or…
Q: Required information Use the following information for the Exercises 8-10 below. (Algo) [The…
A: Specific Identification Method : This is another method of inventory valuation where inventory used…
Q: an, a single taxpayer, has a net long-term capital gain for the year and it is all made up of 25%…
A: Capital gains are applied when any asset is held for more than one year and they are held for more…
Q: Support Department Cost Allocation-Direct Method Yo-Down Inc. produces yogurt. Information related…
A: The direct method for cost allocation is a method for charging the cost of service departments to…
Q: Please do not give solution in image format thanku
A: The assets, liabilities, and equity of a company are listed on a balance sheet, which is a financial…
Q: es You have been provided with the following Aging Report to use to adjust the Allowance for…
A:
Q: Konin Corporation (KC) acquires a 75% interest in Bartovia Corporation (BC), in exchange for cash of…
A: Given in the question: Konin Corporation has acquired 75% interest in Bartovia Corporation The…
Q: USING EXCEL, DEVELOP A PERSONAL CASH BUDGET COVERING MARCH 2023 - DECEMBER 2023
A: dSince excel sheet cannot be uploaded and the excel sheet is big enough here are the Images of the…
Q: Current Attempt in Progress Shamrock Company is preparing its manufacturing overhead budget for 2022…
A:
Q: Pronghorn Corporation, a lessee, enters into a non-cancellable lease contract with LOR Limited, a…
A: In case of lease, lessee has to recognise a Right Of Use(ROU) asset and a corresponding lease…
Q: Danube has a factory which it bought 3 years ago for estimated at zero and the useful life was…
A: Lets understand the basics. As per IAS 36 "Impairment of assets", when carrying amount of asset is…
Q: Consider gross earnings of $86,000. The standard deduction is $12,000 and itemized deduction is…
A: Taxable income is the income on which the tax rate is imposed. It is the income net off of the…
Q: Recording and Reporting Temporary and Permanent Differences The records of Lane Corporation show the…
A: Lets understand the basics. When there is temporary difference arise between the profit as per book…
Q: Compute MACRS depreciation for the following qualified assets for the calendar years 2022 and 2023:…
A: Depreciation is used to allocate capital expenditure on assets over the period of useful life of…
Q: Lewis and Laurie are married and jointly own a home valued at $262,000. They recently paid off the…
A: A tax advantage known as the IRS home loan interest deduction enables homeowners to write off the…
Q: A company has to choose one of the following two actually exclusive machine. Both the machines have…
A: Net Present Value(or NPV) refers to the difference between present value of cash inflows and present…
Q: World Wide Travel-Traditional Income Statement for Year Ended May 31, 2020 Sales Revenue Cost of…
A: Lets understand the basics. Contribution margin means a margin generated from sales after deducting…
Q: Mika Compery was started on January) cash revenues of $31.000 the only events that affected the…
A:
Q: XYZ Ltd, a British Columbia employer, awards Theresa Ray a $1,950.00 bonus that will be paid out…
A: CPP stands for Canada Pension Plan, which is a national social insurance program in Canada. CPP is…
Q: How can a company justify not selling treasury shares for more than a year and also not decreasing…
A: Treasury shares, also known as treasury stock or reacquired shares, are shares of a company's stock…
Q: Row Labels 2015 2016 2017 2018 Grand Total Sum of sales revenue Sum of total cost Sum of gross…
A: Retained earnings means the amount of earnings retained by the entity from the net profit after…
Q: Prepare general journal entries for the balance day adjustments
A: General journal entries at the time of the balance day are the entries which are required as…
Q: WaterCo, a U.S. corporation, purchases inventory for resale from unrelated distributors outside the…
A: Under the U.S. tax rules, the source of income from the sale of inventory is generally determined by…
Q: Pink Company has beginning inventory of 24 units at a cost of $12.00 each on May 1. On June 5, it…
A: In case of LIFO method latest goods will be sold first. Thus ending inventory consists of goods…
Q: Requirements a. What is Sigma Corporation's income tax liability assuming its taxable income is (a)…
A: Income tax liability is the amount of tax that an individual or entity owes to the government based…
Q: Three employees of the Horizon Distributing Company will receive annual pension payments from the…
A: The annual deposit made will include the amount of deposits required and also amount of interest…
Q: During 2021, a company sells 320 units of inventory for $94 each. The company has the following…
A: INVENTORY VALUATION Inventory Valuation is a Method of Calculation of Value of Inventory at the End…
Q: Required information Use the following information for the Exercises 12-13 below. (Algo) [The…
A: The bank reconciliation statement is a document that compares the cash balance in the balance sheet…
Q: "That old equipment for producing oil drums is worn out," said Bill Seebach, president of Hondrich…
A: Make or Buy Decision: Make or buy decision is the decision making for the business under which…
Q: Required information [The following information applies to the questions displayed below.] Littleton…
A: Lets understand the basics. Journal entry: It can be defined as the recording of financial events…
Q: What is the stock to sale ratio for the sleepwear department for May if sales are planned at…
A: Stock to sale ratio is the measure which helps the entity in determining the inventory of the…
Q: 186 Down payment: 0% How much must be paid monthly for 3 years to pay off the balance at 7.1%…
A: Loans are paid by the equal monthly installments and these are equal and fixed monthly payment and…
Q: Using the provided information calculate the NPV Mkhize Ltd is considering buying a machine and has…
A: NET PRESENT VALUE Net Present Value is one of the Important Capital Budgeting Technique. Net…
Q: Wildhorse Company leased equipment to Pina Company on January 1, 2025. Five equal lease payments of…
A: Lease is defined a contractual agreement incorporated between two business entities where one entity…
Q: The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following…
A: Lets understand the basics. Predetermined Overhead Rate :— It is the rate used to allocate…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Orange, Inc., sells a LearnIt-Plus software package that consists of their normal LearnIt math tutorial programalong with a one-year subscription to the online LearnIt Office Hours virtual classroom. LearnIt-Plus retails for$200. When sold separately, the LearnIt math tutorial sells for $150, and access to the LearnIt Office Hours sellsfor $100 per year. When should Orange recognize revenue for the parts of this arrangement? Would your answerchange if Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $100 per yearif they ever decided to do so?GameDay sells recreational vehicles along with secure parking storage to customers. Game Day sells the FB7 model for 62,000, and this price includes one year of secure parking storage. GameDay also sell secure parking storage separately for 8,000 per year, and customers can purchase the FB7 model without secure parking storage for 60,000. If a customer purchases the FB7 model with secure parking storage, how should GameDay allocate the transaction price?Company A provides a bundled service offering to Customer B. It charges Customer B $800,000 for initial connection to its network and two ongoing services - access to the network for 1 year and 'on-call troubleshooting' advice for that year. Customer B pays the $800,000 upfront, on 1 July 2020. Company A determines that, if it were to charge a separate fee for each service if sold separately, the fee would be: Connection fee Access fee Troubleshooting Paragraph $400,000 Lato (Recomm... v $500,000 The end of Company A's reporting period is 30 June 2021. Required Prepare the journal entries to record this transaction in accordance with AASB 15 for 1 July 2020 and the year ended 30 June 2021, assuming Company A applies the relative fair value approach. (Show all workings). $400,000 BI U A/ 19px (... ✓ EQ DC X M
- ONE Computer Solution (“ONE") provides IT solutions to corporate clients. ONE offered a price of $2,400 to Client A if he purchases an accounting software from them and choose them to do the installation. Client A agreed and entered into a contract with ONE on 1 January 2022. ONE normally charges clients $2,000 as a standalone selling price for acquiring the accounting software, at a cost of $1,100. The installation service has a standalone selling price of $500. Client A paid ONE $2,000 upon delivery and the remaining balance upon installation of the software. The accounting software was delivered on 1 February 2022. ONE completed installation on 1 March 2022 and client A paid the balance due. Required: (a) Allocate the transaction price between the accounting software and installation service. (b) Prepare the journal entries on the following date (Note: If no entry is required, state “no entry" and write down the reason to support your answer): (i) 1 January 2022. (ii) 1 February…Sullivan Software sells packages of a software program and one year's worth of technical support for $500. Its packaging lists the $500 sales price as comprised of a software program and technical support. All of Sullivan's sales are for cash, and there are no returns. Sullivan sells the software program separately for $475 and offers a year of technical support separately for $75. Sullivan should recognize revenue for the two parts of the arrangement as follows: Defer the entire $500 and recognize over the support period. O Recognize the portion of the $500 attributable to the software program when the customer pays cash to buy the package; defer the portion attributable to technical support and recognize over the support period. Recognize the entire $500 when the customer pays cash to buy the package. Recognize the entire $500 upon conclusion of the support period.Luke consulting enters into a contract with Holand University to restructure Holand's process for purchasing goods from suppliers. The contract states that Luke will earn a fixed fee of P25,000and earn an additional P10,000 if Holand achieves P10,000 of cost savings. Luke determines the transaction price as the expected value of expected consideration, what transsaction price will Luke estimate for this contract?
- On 1st July 2023, LizardCom Co provides a bundled-service package to E. Aardvark for $1200 upfront. The service package includes: Upfront advice Database access for a 1-year period If each service was sold separately to E. Aardvark the fees would be: Up-front advice $600 Database access $900 Using the relative fair value approach, the amount of revenue recognised by LizardCom in relation to the database access over the financial year ended 30th June 2024 is (rounded to the nearest whole dollar): Group of answer choices 600 720 900 800(Allocate Transaction Price, Upfront Fees) Tablet Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.1. Tablet Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2017, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash.2. Tablet Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $600. Tablet Tailors provides the 3-year tablet service plan as a separate product with a…The following are three independent situations. 1. Sandhill Rewards Inc. provides rewards services to licensees. Sandhill records service revenue related to rewards (granted as reward vouchers, which can be redeemed at a variety of retailers) and recognizes the cost of redemptions in the year vouchers are sold to licensees. Sandhill's past experience indicates that only 80% of the vouchers sold to licensees will be redeemed. Sandhill's liability for stamp redemptions was $12,693,900 at December 31, 2024. Additional information for 2025 is as follows. Service revenue from vouchers sold to licensees Cost of redemptions (vouchers sold prior to 1/1/25) $8,614,200 If all the vouchers sold in 2025 were presented for redemption in 2026, the redemption cost would be $5,173,300. What amount should Sandhill report as a liability for voucher redemptions at December 31, 2025? Liability for stamp redemptions at December 31, 2025 $ Consumer expiration date Total face amount of coupons issued Total…
- Companies that advertise “rent-to-own” dealsare sometimes criticized by consumer advocates for thehigh interest costs built into their rent-to-owncontracts. Rent-A-Center is currently offering a SonyPlayStation 5 Console - Disc Model for $34.99 a weekfor 49 weeks. Alternatively, the “Same as Cash Price” is$1,028.71. What is the APR for Rent-A-Center’s deal?To solve this problem, you must use a financial calculator, Excel, or a TVM calculatorwebsite. What is the effective annual rate for the deal?Sullivan Software sells packages of a software program and one year's worth of technical support for $500. Its packaging lists the $500 sales price as comprised of a software program at a price of $450 and technical support with a price of $100, with a $50 discount for the package deal. All of Sullivan's sales are for cash, and there are no returns. Sullivan sells the software program separately for $475 and offers a year of technical support separately for $75. The amount of revenue that GAAP, regarding software revenue recognition, would require Sullivan to attribute to the software program (as opposed to the technical support) is (rounded):An full-service technology company provides equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. A Customer purchased computer equipment, installation and training for a total cost of P150,000 on May 22, 2021. Estimated stand alone selling price of the equipment, training and installation are P100,000, P90,000 and P60,000 respectively. How much is the transaction price allocated to the installation?