1. Revenue with multiple performance obligations DeSimone's Hockey Shop has decided to hire Computer Associates to install and maintain an accounting sales computer system. The system will be ready for implementation on December 1 , 2016. Sfarbucks has agreed to pay $1,800,000 for the system and four years of customer support beginning in December 2016. Similar systems sell for $1,500,000. Computer Associates also sells customer support contracts for $125,000 a year for similar projects. DeSimone's Hockey Shop may renew the customer support contract at the end of the four years, for $125,000 a year. The contract was signed on September 1, 2016. On September 30, DeSimone's Hockey Shop paid Computer Associates $900,000. The balance of $900,000 will be paid upon successful launch of the software in December. On December 1, 2016, the system was successfully launched and DeSimone's Hockey Shop paid the balance due. a. How many performance obligations are there in the contract? b. Allocate the price to the performance obligations. Prepare the journal entries for Computer Associates on September 30, December 1 and December 31, 2016. Computer Associates has a December 31 year end. c. Page I of 6