User Account

All Pages

Prepare journal entries to record revenue arrangement

Assignment Help Accounting Basics
Reference no: EM132035127

Problem - Tablet Tailors sells tablet PCs combined with Internet service (Tablet Bundle A) that permits the tablet to connect to the Internet anywhere (set up a Wi-Fi hot spot). The price for the tablet and a 4-year Internet connection service contract is $410. The standalone selling price of the tablet is $205 (cost to Tablet Tailors $180). Tablet Tailors sells the Internet access service independently for an upfront payment of $10,000, plus $78 payments at the beginning of years 2-4 of the contract. With an imputed interest rate of 8%, the standalone value of the service is $301. On January 2, 2014, Tablet Tailors signed 100 contracts, receiving a total of $20,899 in cash (full payment of $410 each in cash, less the present value of the note for the future service plan payments), delivered tablets, and started service for 100 tablet packages.

(a) Prepare any journal entries to record this revenue arrangement on January 2, 2014.

(b) Prepare any journal entries to record this revenue arrangement on December 31, 2015.

(c) Prepare any journal entries to record this revenue arrangement on December 31, 2016.

(d) Repeat the requirements for part (a), assuming that Tablet Tailors has no reliable data with which to estimate the standalone selling price for the Internet service.

Reference no: EM132035127

Questions Cloud

Lost business to competitors undercutting pricing : Over the past week you have received calls from 5 of the 8 regional sales directors indicating they have lost business to competitors undercutting pricing.
Issues with marketers collecting secondary data : In marketing research, are there issues with marketers collecting secondary data. Does this infringe on privacy laws or the corporation right to own
What marketing segmentation actually represents : What marketing segmentation actually represents is a "consumer needs gap". How would you best describe a needs gap by an example?
Make criteria of providing a sustainable competitive : Name one company that failed because it did not make criteria of providing a sustainable competitive advantage to the business and what it should have
Prepare journal entries to record revenue arrangement : On January 2, 2014, Tablet Tailors signed 100 contracts, Prepare any journal entries to record this revenue arrangement on January 2, 2014
Consumer behaviours a brand marketer desires : Why are immediate (versus delayed) rewards more effective in inducing the consumer behaviours a brand marketer desires?
What are the advantages and disadvantages of form : What are the advantages and disadvantages of this form of presentation?
Brand managers simply reduce the prices of brands : Rather than offering discounts in the form of coupons, why don't brand managers simply reduce the prices of their brands?
Calculate the amount paid for goodwill : Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. Calculate the amount paid for goodwill

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the amount of accounts receivable

Medlock Corporation factors $260, 800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing.

  Provide an example for which the use of a batch processing

Provide an example for which the use of a batch processing system to handle transactions is appropriate. Provide an example for which the use of online transaction processing is appropriate.

  How you would compute the required annual payment

Your friend wants to be reimbursed at an 8% annual interest rate. Explain how you would compute the required annual payment. Show your calculations

  Classifying a publicly traded company as a strong buy

Discuss at least three (3) criteria that an analyst may use when classifying a publicly traded company as a strong buy

  What selling price would the company set to earn a profit

Assuming the company uses a cost-plus pricing system, what selling price would the company set to earn a profit margin of 20% of cost

  Determine the effect of decrease in the number of units sold

Variable costs are expected to average $21.60 per set; Determine the effect of a decrease in the number of units sold on the break-even point

  Explain its meaning when used as a noun

The meaning of the term "fund" depends on the context in which it is used. Explain its meaning when used as a noun. Explain its meaning when it is used as a verb.

  Find the company inventory turnover ratio

The company has no prepaid expenses and inventories remained unchanged during the year. Based on these data, the company's inventory turnover ratio for the year

  Excessive governmental involvement

Question 1: In the case of Hampton v. United States, 425 U.S. 484 (1976) the Defendant's conviction was reversed by the US Supreme Court due to excessive governmental involvement in the crime

  Why might accountants be construed as powerful individuals

Do you believe that the media portray accounting numbers, such as profits, as some sort of ‘hard' and objective performance indicator?

  Calculate the variable cost of producing these fifteen motor

Molton Motors makes large turbo engines. Calculate the variable cost of producing these fifteen motors

  Compute the amount of goodwill recognized

Compute the amount of goodwill recognized, if any, on 5/31/15. Determine the goodwill impairment loss, if any, to be recorded on 12/31/15

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