Question
Question 2 Part A and B A. [The following information applies to the questions displayed below.] Wilson Links Products sells a product that involves two
Question 2 Part A and B
A. [The following information applies to the questions displayed below.] Wilson Links Products sells a product that involves two separate performance obligations: the SwingRight golf club weight and the SwingCoach teaching software. SwingRight has a stand-alone selling price of $155. Wilson sells both the SwingRight and the SwingCoach as a package deal for $210. The SwingCoach software is not sold separately. Wilson is aware that other vendors charge $110 for similar software, and Wilsons prices are generally 10% lower than what is charged by those vendors. Wilson estimates that it incurs approximately $70 of cost per copy of the software, and usually charges 50% above cost on similar products.
Estimate the stand-alone selling price of the software using the adjusted market assessment approach.
Multiple Choice
-
$99
-
$55
-
$79
-
$35
B. Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:
| Contract amount | $ | 3,450,000 | ||
| Cost: | 2017 | 1,300,000 | ||
| 2018 | 700,000 | |||
| Gross profit: | 2017 | 950,000 | ||
| 2018 | 500,000 | |||
| Contract billings: | 2017 | 1,725,000 | ||
| 2018 | 1,725,000 | |||
ADH recognizes revenue upon completion of the contract. What is the journal entry in 2018 to record revenue?
Multiple Choice
-
Cost of construction 2,250,000 Gross profit 1,200,000 Revenue from long-term contracts 3,450,000 -
Construction in progress 500,000 Cost of construction 700,000 Revenue from long-term contracts 1,200,000 -
Construction in progress 1,450,000 Cost of construction 2,000,000 Revenue from long-term contracts 3,450,000 -
Accounts receivable 1,725,000 Revenue from long-term contracts 1,725,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditing Sustainable Development Goals Key Principles And Tools For Supply Chain
Authors: Barden Gonzalez
1st Edition
B0BZFDM86C, 979-8388651501
