part A

1)Record the entry by the seller at the initiation of the contract assuming 100 contracts are initiated

2) record the entry by the seller one month after inition of contract

part B)

CharterX Inc. also offers a bundled package where a customer receives the 15 month cable subscription (and cable television receiver) along with an internet connection for an upfront fee of $600 plus $800 a month (stated to the customer as $640 per month for cable service, and an additional $160 per month for internet service). The standalone selling price of the internet connection is $320 per month

1) Record the entry by the seller at the initlation of the contract assuming 100 new customers sign up for the bundled option.

2) record the entry by the seller one month after initiation of the contract

Accounting for Upfront Fees and Recording and Allocating Revenue CharterX Inc, establishes a contract with a customer to deliver both a cable television receiver (equipment) and cable television service for 15 months. In exchange, the customer pays a 5600 upfront fee for installation of the cable television receiver (which must be returned to Charterx inc. at the end of the contract term) and pays $640 a month for the premium package of 200+ channels. The $600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease. Required a. (1) How many performance obligations are established in the revenue contract? (2) Record the entry by the seller at the initiation of the contract assuming 100 contracts are initiated. (3) Record the entry by the seller one month after initiation of the contract. Accounting for Upfront Fees and Recording and Allocating Revenue Charter X Inc, establishes a contract with a customer to deliver both a cable television receivef (equipment) and cable television service for 15 months. In exchange, the customer pays a $600 upfront fee for installation of the cable television receiver fwhich must be returned to Charter X inc. at the end of the contract term) and pays 5640 a month for the premium package of 200+ channels. The 5600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease: Required b. Charter X Inci, also offers a bundled package where a customer receives the 15 -month cable subscription (and cable television receiver) along with an internet connection for an upfront fee of 5600 plus 5800 a month (stated to the customer as 5640 per month for cable service, and an additional $160 per month for internet service). The standalone selling price of the internet connection is $320 per month. (1) How many performance oblizations are established in the revenue contract? (2) Record the entry by the seller ot the initiation of the contract assuming 100 new customers sign up for the bundied option. (3) Record the entry by the seller one month after initiation of the contract. Accounting for Upfront Fees and Recording and Allocating Revenue CharterX Inc. establishes a contract with a customer to deliver both a cable television receiver (equipment) and cable television service for 15 months. In exchange, the customer pays a $600 upfront fee for installation of the cable television receiver (which must be returned to CharterX Inc. at the end of the contract term) and pays $640 a month for the premium package of 200+ channels. The $600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease. Required Accounting for Upfront Fees and Recording and Allocating Revenue CharterX Inc, establishes a contract with a customer to deliver both a cable television receiver (equipment) and cable television service for 15 months. In exchange, the customer pays a 5600 upfront fee for installation of the cable television receiver (which must be returned to Charterx inc. at the end of the contract term) and pays $640 a month for the premium package of 200+ channels. The $600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease. Required a. (1) How many performance obligations are established in the revenue contract? (2) Record the entry by the seller at the initiation of the contract assuming 100 contracts are initiated. (3) Record the entry by the seller one month after initiation of the contract. Accounting for Upfront Fees and Recording and Allocating Revenue Charter X Inc, establishes a contract with a customer to deliver both a cable television receivef (equipment) and cable television service for 15 months. In exchange, the customer pays a $600 upfront fee for installation of the cable television receiver fwhich must be returned to Charter X inc. at the end of the contract term) and pays 5640 a month for the premium package of 200+ channels. The 5600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease: Required b. Charter X Inci, also offers a bundled package where a customer receives the 15 -month cable subscription (and cable television receiver) along with an internet connection for an upfront fee of 5600 plus 5800 a month (stated to the customer as 5640 per month for cable service, and an additional $160 per month for internet service). The standalone selling price of the internet connection is $320 per month. (1) How many performance oblizations are established in the revenue contract? (2) Record the entry by the seller ot the initiation of the contract assuming 100 new customers sign up for the bundied option. (3) Record the entry by the seller one month after initiation of the contract. Accounting for Upfront Fees and Recording and Allocating Revenue CharterX Inc. establishes a contract with a customer to deliver both a cable television receiver (equipment) and cable television service for 15 months. In exchange, the customer pays a $600 upfront fee for installation of the cable television receiver (which must be returned to CharterX Inc. at the end of the contract term) and pays $640 a month for the premium package of 200+ channels. The $600 upfront fee has no standalone selling price as it is not sold separately. The $640 charge per month for cable services is at its standalone selling price. The company has determined that the contract for the receiver is not a lease. Required