A company separately sells home security equipment and 12 months of system monitoring service for $200 and $400, respectively The company sells an equipment monitoring bundle on January 1 for a total price of $540 The monitoring service begins immediately after the equipment is delivered and installed on January 1 Required Determine the dollars of revenue that should be allocated to the equipment for each bundled sale Determine the dollars of revenue that should be allocated to the service for each bundled sale Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the Income statement for the period January 1 31 A company separately selis home security equipment and 12 months of system monitoring service for $200 and $400, respectively The company sells an equipment monitoring bundle on January 1 for a total price of $540 The monitoring service begins immediately after the equipment is delivered and installed on January 1 Required 1 Determine the dollars of revenue that should be allocated to the equipment for each bundled sale 2 Determine the dollars of revenue that should be allocated to the service for each bundled sale 3 Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 1 31

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 28, 2024

A company separately sells home security equipment and 12 months of system monitoring service for $200 and $400, respectively. The company sells an equipment/monitoring bundle

A company separately sells home security equipment and 12 months of system monitoring service for $200 and $400, respectively.

The company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately after the equipment is delivered and installed on January 1.

Required:

Determine the dollars of revenue that should be allocated to the equipment for each bundled sale.
Determine the dollars of revenue that should be allocated to the service for each bundled sale.
Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the Income statement for the period January 1-31.

A company separately selis home security equipment and 12 months of system monitoring service for $200 and $400, respectively. The company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately after the equipment is delivered and installed on January 1. Required: 1. Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. 2. Determine the dollars of revenue that should be allocated to the service for each bundled sale. 3. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the income statement for the period January 1-31