Question
On March 1, 2024, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-ounce gold bars on a
On March 1, 2024, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certified 1-ounce 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 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 $1,440 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $60 per unit. Brinks picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1.
Required:
- How many performance obligations are in this contract?
- How does this sale impact the financial statements on March 1?
- How does this sale impact the financial statements on March 30?
- How does this sale impact the financial statements on April 1?
How does this sale impact the financial statements on March 1? Note: Amounts to be deducted should be indicated by a minus sign.
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How does this sale impact the financial statements on March 30? Note: Amounts to be deducted should be indicated by a minus sign.
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- How does this sale impact the financial statements on March 30? Note: Amounts to be deducted should be indicated by a minus sign.
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- How does this sale impact the financial statements on March 30? Note: Amounts to be deducted should be indicated by a minus sign.
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- Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
- Required 3
- Required 4
How does this sale impact the financial statements on March 30? Note: Amounts to be deducted should be indicated by a minus sign.
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Complete this question by entering your answers in the tabs below.
- Required 1
- Required 2
- Required 3
- Required 4
How does this sale impact the financial statements on April 1? Note: Amounts to be deducted should be indicated by a minus sign.
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