Identify the performance obligations

Assignment Help Financial Accounting
Reference no: EM132979571

Assume that Verizon normally sells a Samsung S9 phone for $480 and charges $60 per month for a one-year cell service contract. Assume further that on January 1, Verizon offered a special package price combining the phone and the one-year service contract for $75 per month.

Required:

Problem 1. Identify the contract between the company and the customer.

Problem 2. Identify the performance obligations (components of the bundled sale).

Problem 3. Determine the transaction price.

Problem 4. Allocate the transaction price to the performance obligations proportionately based on the normal retail prices of the performance obligations.

Problem 5. Determine the amount of revenue that should be recorded related to the bundled sale in the first quarter (January 1 to March 31).

Reference no: EM132979571

Questions Cloud

Calculate value of the firm : Calculate the value of the firm given the following information. The firm's desired debt to total capital ratio (debt/(debt+equity)) is 40%.
How would explain what forwards and futures are : How would you explain what Forwards and Futures are? A new client, Bruce Wayne, has stopped by the office and wishes to speak with you.
Discuss how well a new market segment : Discuss how well a new market segment can be satisfied with an existing operation.
Identify three advantages of the investment portfolio : Would you advise your client to invest in only one type of securities or a variety of options? Why are you making that recommendation?
Identify the performance obligations : Identify the performance obligations (components of the bundled sale). Assume that Verizon normally sells a Samsung S9 phone for $480.
How much would thomas need to receive : How much would Thomas need to receive in additional salary (which he would then save) to achieve his objective
Calculate the total required fte : Calculate the total required FTEs (including Nurse Manager, Secretaries, RNs, LPNs, and CNAs) for the Pulmonary Nursing Unit.
Determine the inventory cost using the average cost method : The periodic inventory system is used. Determine the inventory cost using the average cost method.
Post the journal entries to the general ledger : Post the journal entries to the General Ledger. Make sure to include the date, description, ref, debit/credit, and balance for the general ledger?

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!

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