Question

Problem Rest recognitive-multiple performance obligations and variable carte pe Part 16 points turele Incscils cell phones to customers at $1.440 each. The company also sells cell phone plans with unlimited data at $80 per month for 90 per year). If a customer purchases a package which includes a cell phone and 12-month cell phone service with unlimited date the cha i s SIKINI On November 1, 2018, Fuluneec sold a package and the cell phone service plan was initiated immediately. Prepare the journal entry on November I assuming Future loc rod be fullment in cash Part 22 pis The Consultants provided Bran Construction with assistance in implementing a s custa s initiatives. Thomas's contract specifies that it will receive a flat fee of $50,000 and an a n al.20000 if an reaches a prespecified target amount of cost savings. Thomas as that there is a chance that Bran will achieve the cost savings target As Thomas uses the expected sale as its estimate of variable consideration, calculate the copie

Answer 1

Part 1

Date	Account Titles and Explanation	Debit	Credit
November 1, 2018	Cash	1800
	Sales revenue		1080
	Service revenue ($720 x 1/12)		60
	Unearned service revenue ($720 x 11/12)		660
	(To record sale of package)

Note: The cell phone plan revenue for November is recognized immediately since the plan was initiated immediately while it is deferred for the remaining 11 months.

Working:

Performance Obligation	Standalone Price	Percent of Total Standalone Price	Allocation of Transaction Price
Sale of cell phone	$                    1,440	60%	$                                                 1,080
Sale of cell phone plan	$                        960	40%	$                                                     720
Total	$                    2,400	100%	$                                                 1,800

Per HOMEWORKLIB RULES the first question has been answered. Part 2 being an independent question, kindly post the same separately. Thank you.