Question
On December 31, Pane evaluates a contract the firm entered into on December 1 to provide window management consulting services over a 1-year period for
On December 31, Pane evaluates a contract the firm entered into on December 1 to provide window management consulting services over a 1-year period for $9,000 per month. At the end of the contract, Pane has a 90% chance of receiving a $12,000 bonus and a 10% chance of owing a refund of $20,000. The contract is to be performed over time, and Pane believes that no applicable constraints on the variable consideration that would later require the reversal of previously recognized revenue exist. Pane uses the most likely amount when valuing variable consideration. Prepare Pane's entry at December 31 to record the receipt of the $9,000.
Dr.
Dr.
Cr.
account to use for journal entry
Cash |
Investment in Available-for-Sale Securities |
Allowance for Change in Fair Value of Available-for-Sale Investments |
Investment in Equity Securities |
Accounts Receivable |
Allowance for Doubtful Accounts |
Consulting Services Contract Asset |
Inventory |
Prepaid Rent |
Notes Receivable |
Interest Receivable |
Machinery |
Accumulated Depreciation - Machinery |
Equipment Leased to Others |
Accumulated Depreciation - Equip. Leased to Others |
Leased Equipment |
Accumulated Depreciation - Leased Equip. |
Buildings |
Accumulated Depreciation - Building |
Land |
Patents |
Accumulated Amortization |
Goodwill |
Deferred Tax Assets |
Accounts Payable |
Salaries Payable |
Employee Income Tax Withholding Payable |
Federal Unemployment Tax Payable |
State Unemployment Tax Payable |
F.I.C.A. Tax Payable |
Dividends Payable - Common Stock |
Dividends Payable - Preferred Stock |
Income Tax Payable |
Interest Payable |
Liability for Compensated Absences |
Accrued Loss on Purchase Commitment |
Fines and Penalties Liability |
Bonds Payable |
Discount on Bonds Payable |
Premium on Bonds Payable |
Finance Lease Obligation |
Deferred Tax Liabilities |
Common Stock |
Additional Paid in Capital - Common Stock |
Preferred Stock |
Additional Paid in Capital - Preferred Stock |
Retained Earnings |
Treasury Stock |
Unrealized Gain/Loss: Available-for-Sale Securities |
Dividends Declared |
Income Summary |
Sales and Service Revenue |
Interest Revenue |
Rental Revenue |
Unrealized Gain/Loss: Equity Securities |
Realized Gain/Loss: Available-for-Sale Securities |
Cost of Goods Sold |
Depreciation Expense - Building |
Depreciation Expense - Equip. Leased to Others |
Depreciation Expense - Leased Equipment |
Depreciation Expense - Machinery |
Amortization Expense |
Bad Debt Expense |
Income Tax Expense |
Insurance Expense |
Interest Expense |
Payroll Tax Expense |
Rent Expense |
Research & Development Expense |
Salaries Expense |
Loss Due to Fines and Penalties |
Loss on Impairment |
Loss on Purchase Commitment |
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