Blossom Company sells goods that cost $250,000 to Ayayal Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayal Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation. New attempt is in progress. Some of the new entries may impact the last attempt grading Your answer is partially correct. Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to O decimal places, e.g. 5,275.) erformance Obligation When? How much? Senter a dollar amount rounded to O decimal places Deliver goods enter a dollar amount rounded to 0 decimal places Senter a total amount rounded to 0 decimal places Installation Total Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) January 2, 2020 V March 1, 2020 March 1, 2020 June 18, 2020 Account Titles and Explanation No Entry No Entry Accounts Receivable Sales Revenue Unearned Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Cash Accounts Receivable Service Revenue Debit 0 400,000 250,000 250,000 Credit 0 369,000 31,000 250,000 250,000 41,000
Blossom Company sells goods that cost $250,000 to Ayayal Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayal Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation. New attempt is in progress. Some of the new entries may impact the last attempt grading Your answer is partially correct. Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to O decimal places, e.g. 5,275.) erformance Obligation When? How much? Senter a dollar amount rounded to O decimal places Deliver goods enter a dollar amount rounded to 0 decimal places Senter a total amount rounded to 0 decimal places Installation Total Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) January 2, 2020 V March 1, 2020 March 1, 2020 June 18, 2020 Account Titles and Explanation No Entry No Entry Accounts Receivable Sales Revenue Unearned Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Cash Accounts Receivable Service Revenue Debit 0 400,000 250,000 250,000 Credit 0 369,000 31,000 250,000 250,000 41,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Blossom Company sells goods that cost $250,000 to Ayayal Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020.
Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayai Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation.
New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
erformance Obligation When?
How much?
Senter a dollar amount rounded to 0 decimal places
Deliver goods
enter a dollar amount rounded to 0 decimal places
Senter a total amount rounded to 0 decimal places
Installation
Total
Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order
presented in the problem.)
January 2, 2020 ♥
March 1, 2020
March 1, 2020
June 18, 2020
Account Titles and Explanation
No Entry
No Entry
Accounts Receivable
Sales Revenue
Unearned Revenue
(To record sales)
Cost of Goods Sold
Inventory
(To record cost of goods sold)
Cash
Accounts Receivable
Service Revenue
Debit
0
400,000
250,000
250,000
Credit
0
369,000
31,000
250,000
250,000
41,000
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