Determine that additional services are distinct from goods

Assignment Help Accounting Basics

Reference no: EM131763573

Question: Yankee Corp. agrees to provide Albany Company 24 months of coaching services. The contract sets the price at $4,000 per month, which is the normal stand-alone price that Yankee charges. After 16 months, Yankee and Albany agree to modify the contract. Yankee reduces the fee for the 8 remaining months to $3,800 per month, and Albany agrees to a 24-month extension at a cost of $3,600 per month. At the time that the contract is modified, Yankee is charging other customers $3,750 per month for the coaching service. If Yankee determines that the additional services are distinct from the goods and services transferred in the original contract, how would it account for the modification?

Yankee would then recognize revenue of $____?_ per month.

Yankee would use a prospective approach __________ prospective approach in which it considers the original contract terminated and a new contract created.

Reference no: EM131763573

Questions Cloud

Describe the process of auditing accounts recievable : Describe in outline form the process of auditing accounts recievable including the use of confirmations, the selection of recievables to confirm.

Explain the different forms of spectator violence : Different forms of spectator violence have different causes and dynamics. Identify these differences as you describe and make distinctions between panics.

Prepare a statement of activities : The following transactions pertain to the activities of the Whitt Shakespeare Company (WSC), a not-for-profit entity. WSC begins the year 2015 with $10,000.

Record the inception of the lease for the car : On 1 July 201x, Large Mart leases a company car for the service department of the Bpple store (called the "Nerd Herd"). The duration of the lease is 8 years.

Determine that additional services are distinct from goods : Yankee Corp. agrees to provide Albany Company 24 months of coaching services. The contract sets the price at $4,000 per month.

Two schools of thought in real estate : You have been asked to evaluate the following two schools of thought in real estate. One school argues that the value of real estate is based on "location

Compute the estimated cost of endindg inventory : For the year 2014, Buen Provecho Supplies Corp. had net sales of $550,000 and cost of goods available for sale of $450,000.

Consumers of wheat bread : The lack of rain has caused wheat crops to fail. Select the item(s) below which are NOT TRUE.

What is alicia allowable casualty loss deduction : During the year, Alicia's personal summer home was almost completely destroyed by a fire started in a work room. She had adjusted gross income of $110,000.

User Account

All Pages