| 32. Sarjit Systems sold software to a customer for $147,000. As part of the contract, Sarjit promises to provide free technical support over the next six months. Sarjit sells the same software without technical support for $127,500 and a stand-alone six-month technical support contract for $22,500, so these products would sell for $150,000 if sold separately. |
| Prepare Sarjits journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the sale of the software.: 3. | Aria Perfume, Inc., sold 3,160 boxes of white musk soap during January of 2016 at the price of $130 per box. The company offers a full refund for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 3% of sales will be returned. | | How many performance obligations are there in each sale of a box of soap? How much revenue should Aria recognize in January? | | | | | | | | Number of performance obligations in the contract | ? | | January revenue | ? | | 4. | GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2016, GoodBuy sold $1,040,000 of gift cards, and $900,000 of the gift cards were redeemed for products. As of December 31, 2016, $33,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed. | | | | How much gift card revenue should GoodBuy recognize in 2016? Revenue: ? 5. | A construction company entered into a fixed-price contract to build an office building for $30 million. Construction costs incurred during the first year were $10 million and estimated costs to complete at the end of the year were $15 million. | | How much revenue will appear in the companys income statement in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.) | | Revenue: ? How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.) 6. | The 2016 income statement for Anderson TV and Appliance reported sales revenue of $250,000 and net income of $70,000. Average total assets for 2016 was $400,000. Shareholders equity at the beginning of the year was $300,000 and $10,000 was paid to shareholders as dividends. There were no other shareholders equity transactions that occurred during the year. | | Calculate the profit margin on sales, return on assets, and return on shareholders' equity for 2016. | | | | | | Profit Margin (%) | | | Choose Numerator: | / | Choose Denominator: | = | Profit Margin | | | | / | | = | Profit Margin | | | | / | | = | 0 | | | | Return on Assets (%) | | | Choose Numerator: | / | Choose Denominator: | = | Return on Assets | | | | / | | = | Return on assets | | | | / | | = | 0 | | | | Return on Shareholders' Equity (%) | | | Choose Numerator: | / | Choose Denominator: | = | Return on Shareholders' Equity | | | | / | | = | Return on shareholders' equity | | | | / | | = | 0 | | | | | | | |
