Explain how revenue should be recognized

Assignment Help Accounting Basics
Reference no: EM132029902

Question -

Revenue recognition - Below are several independent situations that occurred during 2014 for Lark Corporation:

Situation 1: Lark entered into a consignment arrangement with Sorel Corporation. Sorel will sell the goods and retain a commission.

Situation 2: Lark agreed to provide consulting services to Dodo Company, a small company with a questionable credit rating. The term of the contract is 3 years.

Situation 3: Lark sold equipment that includes a one-year warranty. The individual fair values of the equipment and warranty components are readily available.

Instructions - For each situation, explain how revenue should be recognized under the earnings approach. Be sure to include your reasoning.

Reference no: EM132029902

Questions Cloud

How many quarters of coverage has jordan attained : For part of the summer of this year, Jordan worked full time at a local accounting firm. Jordan is a 19-year-old accounting student attending a state university
What is the disk angular acceleration : It takes 30 rotations to reach an angular velocity of 10 rad/s. What is the disk's angular acceleration?
What are common stockholders residual claims to earnings : What are the common stockholders’ residual claims to earnings? how many directors can the dissident stockholders elect with the proxies they now hold?
Determine the atcf for each year : Milliken uses a digitally controlled dyer for placing intricate and integrated patters on manufactured carpet squares for home and commercial use.
Explain how revenue should be recognized : Instructions - For each situation, explain how revenue should be recognized under the earnings approach. Be sure to include your reasoning
What are the payments going to be : You are purchasing a car with no money down and have borrowed $51,000 at an annual interest rate of 6.3 percent. The terms of the loan require you to pay off.
Sample of wood from the same region : If there was a wooden artifact found in an ancient tomb and It's carbon-14 (14 6 C) activity was measured to be 60.0% of that in a fresh sample
Which gpo policy takes precedence in the case : Is using the option to Store passwords using reversible encryption a good security practice? Why or why not?
What is the half life of material : A 3.00 g sample of an unknown type of radioactive material has decreased after 2 days to the point that 2.52 g remain. a) what is the half life of this material

Reviews

Write a Review

Accounting Basics Questions & Answers

  What percentage will her operating income change

Suppose Sandy sales 1,000 posters. Her average sale price is $32 and her average cost for posters is $12. her fixed expenses total $12,000

  Bill beck bruce beck and barb beck formed the bbb

bill beck bruce beck and barb beck formed the bbb partnership by making capital contributions of 77400 301000 and

  Shepler boot company makes specialty boots for the rodeo

shepler boot company makes specialty boots for the rodeo circuit. on december 31 2010 the company had a 500 pairs of

  How does customer benefit by spending on accounting system

The controller of a retail company has just had a $50,000 request to implement an ABC system quickly turned down.

  Construct the cost formula for total labor cost

Using Regression to Calculate Fixed Cost, Calculate the Variable Rate, Construct a Cost Formula, and Determine Budgeted Cost Refer to the information for Pizza.

  Lunderville inc bases its selling and administrative

lunderville inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows

  Compute net cash provided by operating activities

Compute net cash provided by operating activities,the net change in cash during the year, and free cash flow.

  Calculate the amount of free cash flow

Calculate the amount of free cash flow for each of 2007, 2008, and 2009, and comment briefly on your conclusion concerning this information

  Dr massy who specializes in internal medicine wants to

dr. massy who specializes in internal medicine wants to analyze his sales mix to find out how the time of his physician

  On july 1 2012 an interest payment date 80000 of parks co

on july 1 2012 an interest payment date 80000 of parks co. bonds were converted into 1600 shares of parks co. common

  What is the most nellie should pay for the bond

Nellie is evaluating a potential bond purchase that the seller purchased 12 years ago for $4,000. What is the most Nellie should pay for the bond

  What can be deducted from tax returns and what not

What can be deducted from tax returns and what not, the State Planning Commission was decidedly pro-development and routinely approved

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd