1.John enrolled and paid $2,000 for a 6-month painting course on September 1st with Paul's Painting Emporium.

2.Haines Heating sold an HVAC system to a customer for $35,000 on January 1.As part of the contract, Haines will provide "free" maintenance support for the first year.Haines sells the same system without maintenance support for $30,000 and a stand-along maintenance contract for $10,000.

3.Prepare Haine's journal entry to record the sale of the HVAC system.

On June 1, 2018, Jasper, Inc. signed a two-year contract to manage and maintain a commercial property complex.The contract begins on July 1, 2018.Under the terms of the contract, Jasper will be paid a fixed fee of $60,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that occupancy exceeds 90%.Jasper estimates a 60% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.

a)Assume Jasper estimates variable consideration as the expected value.How much revenue should Jasper recognize on this contract in 2018?

b)Assume Jasper estimates variable consideration as the most likely amount.How much revenue should Jasper recognize on this contract in 2018?

4.Minor Music sells a product that contains two performance obligations:the Maestro keyboard and the Maestro teaching software.The Maestro keyboard has a stand-alone selling price of $350.Minor Music sells both the Maestro keyboard and teaching software as a package deal for $500.The Maestro teaching software is not sold separately.Minor Music is aware that teaching software can be purchaed from other vendors for $200.Minor Music prices are generally 10% lower than what is charged by those vendors.Minor Music estimates that it incurs costs of approximately $100 per copy of the teaching software and usually charges 55% above cost on similiar products.

a)Estimate the stand-alone selling price of the software using the residual approach.

b)Estimate the stand-alone selling price of the software using the adjusted market assessment approach.

c)Estimate the stand-alone selling price of the software using the expected cost plus margin approach.