How many performance obligations are in this contract

Assignment Help Financial Accounting

Reference no: EM13755149

On March 1, 2016, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink’s, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brink’s picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1.

Required:

1. How many performance obligations are in this contract?

2. to 4.

Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM13755149

Questions Cloud

Management anticipates fixed costs : Management anticipates fixed costs of $79,000 and variable costs equal to 40% of sales. What will pretax income equal if sales are $335,000?

Margin of safety as a percentage of sales : Hartman Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety as a percentage of sales?

Journal entries for the transactions for morgan : Prepare the journal entries for the following transactions for Morgan Co.

Why did alliance between us and soviet union begin tounravel : Why did the alliance between the u.s. and the soviet union begin to unravel?

How many performance obligations are in this contract : On March 1, 2016, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Bri..

Discusses business information systems : Next, find a peer-reviewed article that discusses business information systems that you feel will be useful in helping you to complete this week's Assignment

What is a source of nursing research : The research problem can be developed from many sources. What is a source of nursing research? Identify a potential research study example from that source.

Dynamic routes using rip protocol : To define the addressing scheme of the company XYZ network you will indicate: The subnet mask selected, the maximum number of subnets provided by the selected subnet mask

What is the margin of safety in dollars : For Bobby company, sales are $1,000,000 (5000 units), fixed expenses are $300,000, and contribution margin per unit is $80. what is the margin of safety in dollars?

User Account

All Pages