a.
Performance Obligations | Transaction Price as Stated | Standalone Selling Price | Allocated Transaction Price |
Vehicle | 30250 | 30000 | 29754 |
Annual maintenance contract | 30250 | 500 | 496 |
30250 | 30500 | 30250 |
Account Name | Dr. | Cr. |
Cash (48 x $30250) | 1452000 | |
Sales Revenue-Vehicle (48 x $29754) | 1428192 | |
Unearned Service Revenue (48 x $496) | 23808 |
b.
Performance Obligations | Transaction Price as Stated | Standalone Selling Price | Allocated Transaction Price |
Vehicle | 30250 | 30000 | 29608 |
Annual maintenance contract | 30250 | 650 | 642 |
30250 | 30650 | 30250 |
Account Name | Dr. | Cr. |
Cash (48 x $30250) | 1452000 | |
Sales Revenue-Vehicle (48 x $29608) | 1421184 | |
Unearned Service Revenue (48 x $642) | 30816 |
c.
Performance Obligations | Transaction Price as Stated | Standalone Selling Price | Allocated Transaction Price |
Vehicle | 30250 | 30000 | 29715 |
Annual maintenance contract* | 30250 | 540 | 535 |
30250 | 30540 | 30250 |
*AMC-Standalone selling price = $400 + (35% x $400) = $540
Account Name | Dr. | Cr. |
Cash (48 x $30250) | 1452000 | |
Sales Revenue-Vehicle (48 x $29715) | 1426320 | |
Unearned Service Revenue (48 x $535) | 25680 |
Print Platon Allocating Transaction Price to Performance Obligations and Recording Sales Value Dealership in markets and...
Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and...
Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and...
Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and...
Allocating a Transaction Price Seven Flags Park offers a promotion for free parking to customers who purchase a one day pass to enjoy thrill rides at its park plus two meal vouchers for a total of $75. Seven Flags sells each of the contract promises separately during the same time frame for the following standalone prices: Day pass = $45, Parking = $20, and two meal vouchers = $30. Compute the allocated transaction price of the day, two meals, and...
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