Cullumber Company sells goods that cost $295,000 to Mark Company for $415,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $39,100. The fair value of the goods is $385,900. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Mark pays Cullumber $267,000 on delivery of the goods and the balance at the completion of the installation. (a) Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Cullumber. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.) Performance Obligation Deliver goods Installation Total When? tA $ LA How much?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cullumber Company sells goods that cost $295,000 to Mark Company for $415,000 on January 2, 2023. The sales price includes an
installation fee, which is valued at $39,100. The fair value of the goods is $385,900. The goods were delivered on March 1, 2023.
Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract,
Mark pays Cullumber $267,000 on delivery of the goods and the balance at the completion of the installation.
(a)
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Cullumber.
Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.)
Performance Obligation
Deliver goods
Installation
Total
eTextbook and Media
List of Accounts
Save for Later
When?
$
$
How much?
Attempts: 0 of 2 used Submit Answer
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
Transcribed Image Text:Current Attempt in Progress Cullumber Company sells goods that cost $295,000 to Mark Company for $415,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $39,100. The fair value of the goods is $385,900. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, Mark pays Cullumber $267,000 on delivery of the goods and the balance at the completion of the installation. (a) Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Cullumber. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.) Performance Obligation Deliver goods Installation Total eTextbook and Media List of Accounts Save for Later When? $ $ How much? Attempts: 0 of 2 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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