User Account

All Pages

What amount of revenue should panarin associate

Assignment Help Financial Accounting
Reference no: EM132937828

Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts:

                               Contract A            Contract B

Contract price             $125,000                  $80,000

Cost of related goods       70,000                   55,000

Gross profit (loss)            $55,000                 $25,000

Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.

Required:

Problem 1: Should the two contracts be combined for purposes of applying the five-step revenue recognition model?

Problem 2: What amount of revenue should Panarin associate with each of the contracts?

Problem 3: When should revenue be recognized on each of the contracts?

Reference no: EM132937828

Questions Cloud

What would be reported as cost of goods sold on the income : What would be reported as Cost of Goods Sold on the income statement for the year ending December? 31, 2025 if the perpetual inventory system
How would the accounting treatment differ : How would the accounting treatment differ if the contract price was £480,000 but all the figures remained the same
Provide examples and details of time value of money : Provide examples and details of time value of money such as future value, future value of a lump sum or single sum, the present value of a lump sum
Why is the break-even point important : Question - Why is the break-even point important and what are the challenges for businesses in calculating and using it
What amount of revenue should panarin associate : Should the two contracts be combined for purposes of applying the five-step revenue recognition model? What amount of revenue should Panarin associate
What is the profit-loss for the mine in AUD : The price has increased to USD 42 per tonne and the exchange rate is AUD/USD 0.8200. What is the profit/loss for the mine in AUD
What is the balance of the? company merchandise? inventory : What is the balance of the? company's Merchandise? Inventory, as disclosed in the December? 31, 2025 balance sheet as per the periodic FIFO inventory
Is it possible that making investments : Is it possible that making investments with expected returns higher than your company's cost of capital will destroy value? If so, how
Which of the journal entries correctly records transaction : Which of the journal entries correctly records the? transaction? A company that uses the perpetual inventory system sold goods to a customer on account

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!

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