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How much gross profit will Apache recognize in both 2016 and 2017 applying the cost recovery method?
How much revenue, cost, and gross profit will the company recognize in the first and second year of the contract applying the cost recovery method.
Would your answer change if Orange did not sell the LearnIt Office Hours separately, but believed it would price it at $100 per year .
What should be the balance in the deferred gross profit account at the end of 2016 and 2017?
Charter Corporation, which began business in 2016, appropriately uses the installment sales method of accounting for its installment sales.
Compute the amount of gross profit to be recognized from the installment sale in 2016, 2017, 2018, and 2019 if revenue was recognized upon delivery.
Assume that the $243,000 contract price was paid on July 1, 2016. Prepare a journal entry to record the cash receipt.
Assume that each of the components can be used independently, even though Richardson sells them as an integrated system.
Assume that the initial services to be performed by Submarine Sandwich subsequent to October 1, 2016, are substantial and that collectibility .
Finerly shipped cosmetics to its distributors and is considering whether it should record $300,000 of revenue upon shipment of a new line of cosmetics.
Lego normally charges stand-alone prices of $3,000, $4,000, and $5,000, respectively, for each of these three smaller tasks if done separately.
The company offers a full refund for any product returned within 30 days from the date of purchase.
Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Customers purchase from Amazon using credit cards, and Amazon forwards cash to Apple equal to the retail price minus a $150 commission that Amazon keeps.
Estimate the stand-alone selling price of the club-fitting services using the adjusted market assessment approach.
Assuming that the golf clubs and the club fitting services are separate performance obligations, estimate the stand-alone selling price of the club-fitting.
Assuming that the golf clubs and the club-fitting services are separate performance obligations, estimate the stand-alone selling price of the club fitting.
How much revenue in 2016 will TopChop recognize for its arrangement with Carlos?
GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2016, GoodBuy sold $1,000,000 of gift cards, and $840,000 .
Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million.
During the first year the company billed its customer $7 million, of which $5 million was collected before year-end. What would appear in the year-end balance .
How much revenue and gross profit or loss will the company recognize in the first and second year if it recognizes revenue upon contract completion?
How much gross profit or loss will Franklin recognize in the first year if it recognizes revenue over time according to percentage of completion?
Sales for the year of $600,000 generated a gross profit of $200,000.
Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.