What amount of expense related to the contract

Assignment Help Accounting Basics
Reference no: EM132636883

Question - Barrios Communications is a provider of satellite television services. It will install a satellite dish free of charge for any customer that agrees to a one-year service contract at a price of $50 per month. Installation costs Barrios $150. Customers typically remain with Barrios for much longer than the one year required, an average of 10 years (i.e., 9 years beyond their contractual obligation).

Barrios enters into a contract under the terms described above on January 1, 20X1.

Required -

1. What amount of revenue should Barrios record related to the contract in 20X1?

2. What amount of expense related to the contract should Barrios record related to the contract in 20X1?

Reference no: EM132636883

Questions Cloud

Describe the primary prevention or health promotion : The teaching plan proposal developed in this assignment will be used to develop your Community Teaching Plan: Community Presentation due in Topic 5.
What observations have you made about its design : After spending some time navigating your zyBook, what observations have you made about its design?
Describes virtualization : Describes virtualization. Pick a virtualization platform of your choice and describe how it manages the hardware to present guest operating systems
What would the capitalized cost be : For Alternative 1, what would the capitalized cost be if the project were considered to extend indefinitely rather than a 50 year life?
What amount of expense related to the contract : What amount of expense related to the contract should Barrios record related to the contract in 20X1
Explain how you might apply the stepwise approach : Asthma is a respiratory disorder that affects children and adults. Advanced practice nurses often provide treatment to patients with these disorders.
Make all journal entries required : During 2016, Riverbed Corporation spent $162,720 in research and development costs. Make all journal entries required in 2020 and 2021
Identify a primary concept related to phenomenon of interest : Identify a primary concept related to your phenomenon of interest. (You may use the same concept you addressed in this week's Discussion.)
Which of the items relates to separating the reporting : Which of the items relates to separating the reporting of business and personal economic transactions? business entity assumption

Reviews

Write a Review

Accounting Basics Questions & Answers

  Estimate the fixed cost of maintenance annually

Use the high-low method to estimate the fixed cost of maintenance annually and the variable cost of maintenance per vistor

  Discuss what amount should hertz report as income tax

what amount should Hertz report as income tax expense-current portion

  Record the change in selling price

A company $100 million of fixed interest rate bonds payable at $98 million. At year-end, the bonds were selling in the bond market at $97 million. What entry would Moore Company make at year-end to record the change in selling price?

  Prepare journal entries to record the transactions

Prepare journal entries to record the transactions above on the books of Teletex Systems, Inc. The company uses a periodic inventory system

  What actual amount of manufacturing overhead cost incurred

A budgeted indirect-cost rate of $22 per direct-labor hour. What actual amount of manufacturing overhead cost was incurred during August 2013

  On september 1 2010 winans corporation acquired aumont

on september 1 2010 winans corporation acquired aumont enterprises for a cash payment of 687130. at the time of

  How is it possible for a company to suffer a net loss for

how is it possible for a company to suffer a net loss for a given year yet produce a positive net cash flow from

  Compute the equivalent units of production for materials

Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; Compute the equivalent units of production

  Taxes and real estate commission

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $17M, and production and sales will require an initial $5M investment in NOWC. The company's tax rate is 40%.

  Prepare classified balance sheet in good form as of december

Long-term debit $1,100 Accumulated-depreciation equipment $15,300 - Prepare a classified balance sheet in good form as of December 31, 2020

  How does your interpretation of the image change

Search the Internet for an image from a used as part of an advertisement or published with a written work. How does your interpretation of the image change?

  How an earnings bath may be achieved

who is due to take up his appointment very shortly. Last night, at the invitation of a friend, you attended a prestigious charity function which, coincidentally, was also attended by Mr Bouche

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