1. Specifically name the performance obligations for customers who buy s bunclded package

2. What is the total transaction price?

3. What amount of the total transaction price should be allocated to the computer support?

4. What is the impact on retained earnings for 20X5 for all three performance obligations? HINT: Remember to include revenue recognized immediately, the related cost of goods sold as well as any revenue originally deferred then later recognized throughout the year. Indicate if retained earnings increase, decreases or no impact.

5. At the balance sheet date 12/31/X5 what is the balance in the liability account deferred computer support service revenue?

Problem Jeffries Corporation manufactures and sells computer hardware and software. The software can be purchased and installed on an computer. They also sell computer support services, separately the hardware, software and service either with a bundle or on a stand alone basis. Sometimes they bundles good sold and sometimes they sell each of the three on a stand alone basis. Since they manufacture the and the software they have cost of for the related to these products. The following information hard Jeffries prepares the journal entries entire month at pertains to total orders received during the month. the end of the month. Round all answers and do not worry about minor rounding differences. Number of Customers Hardware and software computer support service starts on 3/1/X5 Length of computer support service contracts 12 months Date of delivery of hardware and software 3/1/XS Price of computer support service contract if sold alone 1,560 Price of computer (hardware) if sold alone 895 Cost of computer (hardware) to manufacture 315 400 Price of software if sold separately Cost of software to manufacture Price charged for all three bundled (hardware, software & support service) 2,500 Customers are required to pay for the bundled package up front Jeffries Corporation uses the perpetual inventory system and their year end for financial reporting purposes is December 31. Identify the performance obligation(s) in the contract