1 2 3 4 5 6 7 8 9 10 11 Installation is considered a separate performance obligation and was completed 12 on April 10, 2023. 13 Under the terms of the contract, Mississauga Co. pays Sheridan Summer Ltd. 14 as follows: 15 28722732 PART C.3- Revenue Recognition - Multiple Performance Obligations [10 marks; approx. 15 mins] Sheridan Summer Ltd. sells goods to Mississauga Co. as follows: Sales revenue for goods 21 Cost of goods sold The goods were delivered on March 10, 2023. 16 17 18 REQUIRED 19 24 The selling price of the goods includes an installation fee valued at: The fair value of the goods sold if they were sold on their own is: 25 26 Payment on delivery of goods on March 10, 2023 Balance owed and paid upon installation on April 10, 2023 [A] Determine when and how much revenue would be recognized 20 by Sheridan Summer Ltd. [3 marks] Show your work below to support how much revenue would be recognized. 22 [B] Prepare the journal entries for Sheridan Summer Ltd. on the following dates: March 10 (delivery), and April 10, 2023 (installation) C [7 marks] 750,000 450,000 40,000 760,000 575,000 175,000 [A] Determine when and how much revenue would be recognized by Sheridan Summer Ltd. [3 marks] Show your work below to support how much revenue would be nogomined 8 Performance Obligations Delivery Installation Timeline 10/Mar/23 10/Apr/23 Stand Alone %age of Price Total Delivery Installation Contract Price Allocation to Perf. Oblig Rev.Recog Instal. Accounts (above) Payments Receivable [B] Prepare the journal entries for Sheridan Summer Ltd. on the following dates: February 10, March 10, and April 10, 2023 [7 marks] Account Title and Explanation GENERAL JOURNAL Date 10/Mar/23 10/Mar/23 0/Apr/23 Debit To record cost of goods sold To record sale revenue and customer payment on delivery of product Page Credit To record installation and customer payment of balance