LUWULU ALORS PIO dow Help Create Customize / 4 96.4% Tools Fill & Signa Question 2 Revenue Recognition (9 marks) . Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation, Barkson's cost of the equipment is $80,000, Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. Required: Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) . BE 617 PM 6/29/2020 TL end WIU Window Help Create Customize 3 / 4 96.4% Tools Fill & Sign services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. . . . Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. Required: i) Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) iii) Prepare the journal entries on May 1 and July 1, Year 7. Round to the nearest dollar (5 marks) TE 6:18 PM 6292020 Question 2 Revenue Recognition (9 marks) Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. . . Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment. Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. . Required: Create - Customize . 96.4% Tools Fill & Sign Comm Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment. Barkson delivers the equipment on May 1, Year 7 and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. . . Required: i) Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) iii) Prepare the journal entries on May 1 and July 1, Year 7. Round to the nearest dollar (5 marks) DI 633 PM 6/29/2020 DSC TO F6 FB FO LUWULU ALORS PIO dow Help Create Customize / 4 96.4% Tools Fill & Signa Question 2 Revenue Recognition (9 marks) . Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation, Barkson's cost of the equipment is $80,000, Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. Required: Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) . BE 617 PM 6/29/2020 TL end WIU Window Help Create Customize 3 / 4 96.4% Tools Fill & Sign services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. . . . Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. Required: i) Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) iii) Prepare the journal entries on May 1 and July 1, Year 7. Round to the nearest dollar (5 marks) TE 6:18 PM 6292020 Question 2 Revenue Recognition (9 marks) Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. . . Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment. Barkson delivers the equipment on May 1, Year 7, and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. . Required: Create - Customize . 96.4% Tools Fill & Sign Comm Barkson Company, a public company, manufactures equipment and also provides installation services. The installation process does not involve changes to the features of the equipment to perform specifications. Barkson has the following relationship with Dog Inc. Dog decides to purchase equipment from Barkson and contracts with Barkson to install the equipment for a total price of $210,000. If Dog only purchased the equipment from Barkson, the price would be $200,000 Dog contacts another company and determines installation service would cost $20,000 if another company did the installation. Barkson's cost of the equipment is $80,000. Dog is obligated to pay Barkson the $210,000 upon delivery of the equipment. Barkson delivers the equipment on May 1, Year 7 and completes the installation of the equipment on July 1, Year 7. The equipment has a useful life of 7 years. . . Required: i) Identify the separate performance obligations and explain why (1 mark) ii) Allocate the price to the performance obligations (3 marks) iii) Prepare the journal entries on May 1 and July 1, Year 7. Round to the nearest dollar (5 marks) DI 633 PM 6/29/2020 DSC TO F6 FB FO