User Account

All Pages

How should loud account for this contract modification

Assignment Help Financial Accounting
Reference no: EM132932068

Question - On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan. On July 1, 2017, the customer realizes that she needs less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term of the contract (18 months). The unlimited talk and 2 GB data plan is priced at $55 per month. The $55 per month is Loud's current stand-alone price for this plan that is available to all customers.

Required -

1. How should Loud account for this contract modification?

2. Provide Loud's new monthly revenue recognition journal entry.

Reference no: EM132932068

Questions Cloud

Explain the key requirements of the Privacy Act : Explain the key requirements of the Privacy Act with regard to personal Information (PI). Explain key requirements of relevant legislation
Outline the foundation and history of the tourism : Examine the various environmental, economic and socio-cultural impacts often associated within the tourism, hospitality, and events industries
Find which is an example of a profit center : Which is an example of a profit center? An individual restaurant which is part of a chain of restaurants. The accounting department.
What evidence is there that mass extinction events occurred : What evidence is there that mass extinction events occurred?
How should loud account for this contract modification : The unlimited talk and 2 GB data plan is priced at $55 per month. How should Loud account for this contract modification
Discuss the difference in ex vivo and in vivo therapy : Describe why gene therapy is considered to be a promising treatment for a number of diseases. Discuss the difference in ex vivo and in vivo therapy.
Describe plain view doctrine : Describe the plain view doctrine, and why it has such a significant impact on digital forensics?
What is turgor pressure in a plant cell : What is turgor pressure in a plant cell? What keeps plant cells from bursting when placed in a hypotonic solution?
Which is a possible explanation for the mispricing : Which is a possible explanation for the mispricing? You calculate the six-month forward rate is not perfectly equal to the expected forward rate

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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