Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $1,006,000, payment...
Presented below are three revenue recognition
situations.
| (a) | Groupo sells goods to MTN for $1,006,000, payment due at delivery. | |
|---|---|---|
| (b) | Groupo sells goods on account to Grifols for $740,000, payment due in 30 days. | |
| (c) | Groupo sells goods to Magnus for $536,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $502,200. |
Indicate the transaction price for each of these situations and
when revenue will be recognized.
| (a) | (b) | (c) | ||||
|---|---|---|---|---|---|---|
|
Transaction Price |
||||||
|
Revenue will be recognized |
Homework Answers
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Presented below are three revenue recognition
situations.
(a)
Groupo sells goods to MTN for $1,006,000, payment...
Brief Exercise 18-08 Presented below are three revenue recognition situations. (a) (b) (c) Groupo sells goods...
Brief Exercise 18-08 Presented below are three revenue recognition situations. (a) (b) (c) Groupo sells goods to MTN for $1,000,000, payment due at delivery. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000. Indicate the transaction price for each...
Revenue Recognition Identify the proper point to recognize revenue for each of the following transactions. a....
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Help please! Brief Exercise 18-9 On January 2, 2017, Crane Inc. sells goods to Geo Company...
Help please!
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Presented below are three independent situations. 1. Carla Stamp Company records stamp service revenue and provides...
Presented below are three independent situations.
1. Carla Stamp Company records stamp service
revenue and provides for the cost of redemptions in the year stamps
are sold to licensees. Carla’s past experience indicates that only
80% of the stamps sold to licensees will be redeemed. Carla’s
liability for stamp redemptions was $14,258,200 at December 31,
2019. Additional information for 2020 is as follows.
Stamp service revenue from stamps sold to licensees
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Cost of redemptions (stamps sold prior to 1/1/20)...
Revenues are normally recognized when the company transfers promised goods or services in the amount the...
Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $11,645 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $2,600 to...
Revenues are normally recognized when the company transfers promised goods or services in the amount the...
Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: Book Print a. A popular ski magazine company receives a total of $11645 today from subscribers. The subscriptions begin in the next fiscal b. On September 1 of the current year, a bank lends $2,700 to a company, the note principal...
Brief Exercise 18-08 Presented below are three revenue recognition situations. (a) (b) (c) Groupo sells goods to MTN for $1,000,000, payment due at delivery. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000. Indicate the transaction price for each...
Help please!
Brief Exercise 18-9 On January 2, 2017, Crane Inc. sells goods to Geo Company in exchange for a zero-interest-bearing note with face value of $10,900, with payment due in 12 months. The fair value of the goods at the date of sale is s9,600 (cost $5,760) Prepare the journal entry to record this transaction on January 2, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select...
Identifying Customer Control and Recording Advance Payment Allstar Inc. sells uniforms and spirit clothing to local school teams. Allen High School placed an order for 80 items for a total selling price of $3,520 on September 14, 2020. The cost of the merchandise to Allstar Inc. is $1,784. To place the order, Allstar Inc. required an $800 down payment on September 14, 2020. Delivery of the order to Allen is completed on October 7, 2020, at which time the remaining...
Check my work Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to receive. The amount recorded is the cash-equivalent sales price. The following transactions occurred in September: a. A popular ski magazine company receives a total of $11,545 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $1,500 to a company,...
Presented below are three independent situations.
1. Carla Stamp Company records stamp service
revenue and provides for the cost of redemptions in the year stamps
are sold to licensees. Carla’s past experience indicates that only
80% of the stamps sold to licensees will be redeemed. Carla’s
liability for stamp redemptions was $14,258,200 at December 31,
2019. Additional information for 2020 is as follows.
Stamp service revenue from stamps sold to licensees
$9,643,300
Cost of redemptions (stamps sold prior to 1/1/20)...
Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $11,645 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $2,600 to...
Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: Book Print a. A popular ski magazine company receives a total of $11645 today from subscribers. The subscriptions begin in the next fiscal b. On September 1 of the current year, a bank lends $2,700 to a company, the note principal...
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