Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2- Brigette Corporation sells refurbished photocopiers to Canadian-based businesses. Brigette also provides installation and and on-going maintenance services for a wide variety of photocopiers. On

2- Brigette Corporation sells refurbished photocopiers to Canadian-based businesses. Brigette also provides installation and and on-going maintenance services for a wide variety of photocopiers. On October 5, 2023, Brigette sells a photocopier to Kieso Industries, which it will also install for an all-inclusive price. Photocopier sales and installation services are considered to be separate performance obligations. In accordance with the terms of the contract, Kieso is required to pay a percentage of the contract price on October 5, 2023, with the balance of the contract price due upon completion of the installation. Details regarding the sales contract follow: Fair value of the photocopier $ 17,085 Fair value of the installation service $ 1 ,025 All-inclusive contract price in accordance with terms of the contract $ 17,205 Cost of the photocopier to Brigette Corporation $ 11,447 Percentage of contract price paid by Kieso on October 5, 2023 31% Brigette delivered the photocopier to Kieso on October 22, 2023. Brigette did not install the photocopier until November 3, 2023. Kieso paid the balance of the contract price on the date of installation. Brigette Corporation follows IFRS and prepares its financial statements on a monthly basis. Required: 1- Determine the appropriate allocation of the selling price to the performance obligations. Round final amounts to the nearest dollar. (2 marks) 2- Prepare the journal entries required for this revenue arrangement for Brigette Corporation on each of the following dates: October 5, 2023 (1 mark) October 22, 2023 (3 marks) November 3, 2023 (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Lets tackle the problem step by step 1 Allocation of the Selling Price to Performance Obligations First we need to determine the relative standalone s... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction To Concepts Methods And Uses

Authors: Clyde P. Stickney, Roman L. Weil

8th Edition

0030182689, 978-0030182686

More Books

Students also viewed these Accounting questions