Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On March 1, 2016, Gold Examiner receives $157,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a

On March 1, 2016, Gold Examiner receives $157,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brinks, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,482 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $78 per unit. Brinks picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1.

Determine the number of performance obligations:

I determined it was 2.

Record the following journal entries:

1. Record the receipt of cash by Gold Examiner.

2. Record any necessary entry when Brink's has picked up the gold bars from Gold Examiner.

3. Record any necessary entry upon delivery of the gold bars to the bank.

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

Implementing Standardized Work Training And Auditing

Authors: Alain Patchong

1st Edition

146656363X, 978-1466563636

More Books

Students also viewed these Accounting questions

Question

Hey, Cheggland, I need help with i

Answered: 1 week ago