Transaction price allocated to the pool and the installation

Assignment Help Financial Accounting

Reference no: EM131262994

Bella Pool Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a separate performance obligation and is expected to take 3 months to complete. The transaction price allocated to the pool and the installation is?

Reference no: EM131262994

Questions Cloud

Statement of cash flows operating activities : Nikels prepares its statement of cash flows using the direct method. If Nikels sells equipment for a gain of $35,000 when the book value is $100,000 what amount will be reported on the statement of cash flows operating activities section related to t..

Journal entry to record the actual return : Botanic Choice sells natural supplements to customers with an unconditional sales return if they are not satisfied. The sales returns period extends 60 days. On February 10, 2018, a customer purchases $4,000 of products (cost $2,000). Assuming that b..

Prepare the journal entry to record this transaction : On December 31, 2017, Dieker Company sells equipment to Tabor Inc. for $125,000. Dieker includes a 1-year assurance warranty service with the sale of all its equipment. Prepare the journal entry to record this transaction on December 31, 2017.

Sales with returns and discounts : On July 2, 2018, Lake Company sold to Sue Black merchandise having a sales price of $9,000 (cost $5,400) with terms of 2/10. n/30. f.o.b. shipping point. Lake estimates that merchandise with a sales value of $900 will be returned. Prepare journal ent..

Transaction price allocated to the pool and the installation : Bella Pool Company sells prefabricated pools that cost $80,000 to customers for $144,000. The sales price includes an installation fee, which is valued at $20,000. The fair value of the pool is $128,000. The installation is considered a separate perf..

What price would the bonds sell for assuming investors : Dooley, Inc., has outstanding $100 million (par value) bonds that pay an annual coupon rate of interest of 10.5 percent. Par value of each bond is $1,000. The bonds are scheduled to mature in 20 years. What price would the bonds sell for assuming inv..

About the ethics of his proposal : The Raintree Cosmetic Company has several loans outstanding with a local bank. The debt agreements all contain a covenant stipulating that Raintree must maintain a current ratio of at least .9. Jackson is concerned about the ethics of his proposal. ..

The gross margin : Nikkel Corporation, a merchandising company, reported the following results for July: The gross margin for July is (pick one):

Period costs respectively for the first year of coverage : A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $3,090 and is paid at the beginning of the first year. Ninety percent of the premium applies to manufacturing operations and ten percen..

User Account

All Pages