Journal entry to record the transaction includes

Assignment Help Financial Accounting

Reference no: EM13793729

Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support to ensure smooth operation of the software. The total transaction price is $350,000. Based on standalone values, the company estimates the consulting services and support have a value of $100,000 and the software license has a value of $250,000. Assuming the performance obligations are not interdependent, the journal entry to record the transaction includes.

a credit to sales revenue for $250,000 and a credit to unearned service revenue of $100,000.

a credit to service revenue of $100,000.

a credit to unearned service revenue of $100,000.

a credit to sales revenue of $350,000.

Reference no: EM13793729

Questions Cloud

Noncash consideration should be : Noncash consideration should be

Guided practice, independent practice and culmination : explanation of presentation procedures for new information, guided practice, independent practice, and culmination

Production and cost data for the month : Rondeli Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Rondeli Company uses the FIFO method to compute equivalent units. Pro..

First step in the process for revenue recognition is to : The first step in the process for revenue recognition is to

Journal entry to record the transaction includes : Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company also provides consulting services and support to ensure smooth operation of the software.

What was the innovative supply chain strategy : What was Essilors mission and what was the innovative supply chain strategy used to support the mission and how did Essilor use the combination of innovation and customer service to become one of the world's 30 most innovative companies by Forbes?

Instalment liquidation : Nelson, Parker, and Rice are partners who share profits 4:3:3, respectively. Parker decides that it would be more profitable for him to operate as a sole proprietor. Nelson and Rice are in agreement that life would be more rewarding if Parker were to..

Explain and evaluate contingencies : Explain and evaluate contingencies

The discount partnership is being liquidated : The Discount Partnership is being liquidated. Prepare a schedule of partnership liquidation for each of the following three independent cases. The noncash assets are sold for $60,000, and any partner with a deficit is unable to eliminate any of the d..

User Account

All Pages