ACCT 230-Shaw Company sells goods that cost $300,000 to

ACCT 230-Shaw Company sells goods that cost $300,000 to

Question # 00400339 Posted By: rey_writer Updated on: 10/06/2016 01:51 AM Due on: 10/06/2016
Subject Accounting Topic Accounting Tutorials:
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E18-12 (Allocate Transaction Price) Shaw Company sells goods that cost $300,000 to Ricard Company for $410,000 on January 2, 2017. The sales price includes an installation fee, which has a standalone selling price of $40,000. The standalone sell-ing price of the goods is $370,000. The installation is considered a separate performance obligation and is expected to take 6 months to complete.

Instructions

(a) Prepare the journal entries (if any) to record the sale on January 2, 2017.

(b) Shaw prepares an income statement for the first quarter of 2017, ending on March 31, 2017 (installation was completed on June 18, 2017). How much revenue should Shaw recognize related to its sale to Ricard?

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    Tutorial # 00395541 Posted By: rey_writer Posted on: 10/06/2016 01:51 AM
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