Accounting Chapter 18 assignment

Fences Review v View Help Editing I U or AAO " A B ... ::vivo JUU In each of the separate scenarios, determine and describe the number of performance obligations A An optometrist enters into a contract with a customer to sell a pair of contacts along with two free boxes of contacts solution. The optometrist sells contacts and solution separately but the contacts require solution to work properly. Alternative brands of solution are compatible with the contacts B A manufacturer purchased specialized industrial equipment for $350,000 plus installation services with a cost of $35,000. Due to the nature of the equipment, the installation is highly specialized and involves additional modifications of the equipment at the site of installation C A retail customer enters into a contract for a three-year license for anti-virus software. The purchase indudes an initial software download and subsequent software updates over the three-year license period. Because new viruses emerge quickly, the software is expected to change and adapt extensively over the three-year license period. DA service provider enters into a contract with a customer for one year of home security monitoring for $360. Under the sales contract, the service provider guarantees a rate of $295 per year for years two and three as long as there is no lapse in service. The rates for security monitoring are expected to increase by 10% per year without the renewal options E A franchisee enters into a contract with a franchisor for the right to operate a fast food location, using the company's (1) logo, design and advertising materials (2) menu items, recipes, and supplier contacts (3) store designs (4) daily operating instructions for a five- year period beginning January 1, 2020. the upfront fee is $250,000 also indudes the purchase of equipment for $50,000, to be delivered 3 weeks after the date of contract. F A retailer sells barbeque sauce with a coupon attached for $,50 off the next purchase of barbeque sauce. The barbeque sauce typically sells for $2.00 a bottle. G A customer purchased a refrigerator from a home improvement store. Because the customer had no means to transport the refrigerator to her home, she also rented a truck from the store for two hours. At the same time, the customer purchased vehide insurance from the store because she was not sure she would be covered through her own insurance plan. H An owner of a rental property enters into a contract with a service provider to mange its property over a one-year period. Management services vary each day but include items such as managing occupancy, maintenance, and accounting services Son