Solution:
Exercise 6-24:
Revenues | $ 196,000.00 |
Notes:
Licenses | Amount $ | Calculation | Explanation |
First | $ 179,000.00 | Full | It is recognized fully because of no performance obligation is due in future |
Second | $ 17,000.00 | (153000/3 years )*4 M/12 M | As this license is issued for 3 years, so it should be recognized proportionately. |
Revenues | $ 196,000.00 |
Exercise 6-25:
Revenues | $ 123,200.00 |
Notes:
Licenses | Amount $ | Calculation | Explanation |
First | $ 112,000.00 | Full | It is recognized fully because of no performance obligation is due infuture |
Second | $ 11,200.00 | (100800/3 years )*4 M/12 M | Under U.S. GAAP, Saar Associates being a symbolic intellectual property. It should recognize revenue proportionately over the period of 3 years |
Revenues | $ 123,200.00 |
Brief Exercise 6-24 (Algo) Timing of revenue recognition; licenses (L06-7] Saar Associates sells two licenses to...
Check my work Brief Exercise 6-24 (Algo) Timing of revenue recognition; licenses (L06-7) 10 points Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $63,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $54,000, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar...
please correct and complete both problems
Brief Exercise 6-25 (Algo) Timing of revenue recognition; licenses (L06-7) Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $110.000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which kim can use permanently. Second, in exchange for $99,000, Saar provides Kim with a four-year right to market Kim's financial advisory services under the name of...
Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $80,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which Kim can use permanently. Second, in exchange for $63,000, Saar provides Kim with a three-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in...
correct the first problem then complete the second
problem
Brief Exercise 6-25 (Algo) Timing of revenue recognition; licenses (L06-7] Saar Associates sells two licenses to Kim & Company on September 1, 2021. First, in exchange for $110,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which kim can use permanently. Second, in exchange for $99,000, Saar provides Kim with a four-year right to market Kim's financial advisory services under...
Saar Associates sells two licenses to Kim & Company on September 1, 2018. First, in exchange for $104,000, Saar provides Kim with a copy of its proprietary investment management software, which Saar does not anticipate updating and which kim can use permanently. Second, in exchange for $93,600, Saar provides Kim with a four-year right to market Kim's financial advisory services under the name of Saar Associates, which Saar advertises on an ongoing basis. The trade name "Saar Associates" is not...
assume the same facts as in BE-5-23. how much revenue will
Saar recognize in 2018 under this arrangement if Saar report under
IFRS
Saar Associates, which Saar advertises on an ongoing basis. How much revenue will Saar recognize in 2018 under this arrangement? The Role of Accounting as an Information System SECTION 1 278 mar- ketplace and the owner provides no advertising or other benefits to a licensee of the Saar Associates trade pu during the license period. How much...
Kim with a three-year right to market Kim's financial advisory services The trade name "Saar Associates in the marketplace and the owner provides no advertising or other benefits to a How much revenue will Saar recognize in 2018 under this arrangement If Saar reports under U.S. GAAP? (Do not round
Brief Exercise 6-1 (Algo) Revenue recognition at a point in time (L06-2] On July 1, 2021. Apache Company, a real estate developer, sold a parcel of land to a construction company for $2,880,000. The book value of the land on Apache's books was 51.280,000. Terms of the sale required a down payment of $320,000 and 8 annual payments of $320,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2022 How much revenue will Apache...
Brief Exercise 6-18 (Algo) Time value of money (L06-6) On January 1, 2021, Wooten Technology Associates sold computer equipment to the Denison Company. Delivery was made on January 1, 2021, but payment for the equipment of $9,100 is not due until December 31, 2021. Assuming that Wooten views the time value of money to be a significant component of this transaction and that on 12% Interest rate is applicable. (FV of $1. PV of $1. FVA of $1. PVA of...