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i dont think you need to round up the answer On April 7, 2024 McMaster Systems signed a contract to develop and install a virtual
i dont think you need to round up the answer
On April 7, 2024 McMaster Systems signed a contract to develop and install a virtual private network (VPN) for Rickey Kuhn Stores Click the icon to view additional information) Requirement Prepare the journal entry to record the contract and to record any revenue to be recognized during the current period. Show all supporting computations. Begin by completing the table to allocate the contract price to each separate performance obligation. (Enter the percentages to two decimal places, X.XX%. Round your answers to the nearest whole dollar.) Standalone Relative Contract Revenue to be VPN Component Sales Value Fair Value Price Recognized Regional offices $ 121,000 % Corporate office 220,000 % Retail stores 148,500 % Remote users 60,500 % $ Total 550,000 % The transaction price, including installation, is $520,000. The VPN consists of four components: regional offices, corporate, retail stores, and remote users (for example, buyers). Each component is fully functional at the point of delivery. Each of the four components of the total network is correctly classified as a performance obligation, and each has standalone fair values as follows: Standalone Sales Value VPN Component Regional offices Corporate office $ 121,000 220,000 Retail stores 148,500 60,500 Remote users $ 550,000 Total McMaster collects the contract price in advance. McMaster completed the regional office and remote user components on December 31, 2024 Step by Step Solution
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