Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Financial accounting E5-5 59/59 On March 1, 2016, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of Performance certified

image text in transcribed

Financial accounting

E5-5 59/59 On March 1, 2016, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of Performance certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Exam- obligations iner delivers the products to Brink's , a third-party carrier. In addition, Gold Examiner has agreed to provide a O LOS-2 , L05-4, replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is L05-5 $1,40 per unit , and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. Prepare the joumal entry Gold Examiner would record on March 1. 3. Prepare the journal entry Gold Examiner would record on March 30. 4. Prepare the journal entry Gold Examiner would record on April 1

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Social Work Policy Practice Changing Our Community Nation And The World

Authors: Jessica A Ritter

3rd Edition

179354087X, 9781793540874

More Books

Students also viewed these Accounting questions