the August transactions would impact the cash flow, earnings, and balance sheet elements. You may not use all t-accounts REQUIREMENT 2: Complete the necessary accounting entries for Apple Inc. related to the month of August. Then show how given. REVENUE CONTRACT: Apple Inc. sells the iPhone 14 Pro for $1,000 to customers. Included in this $1,000 bundled sales price is folloud and Maps. Apple has determined tally updating its software price of each of the three performance obligations is as The iPhone can be sold separately for $912, the updated software for a 1-year term is worth $60, and the inclusion of services such as Siri, iCloud and Maps for a 1-year term is worth $228. Apple recognizes the revenue and cost related to the physical phone once the product is shipped. Apple recognizes revenue for the other two performance obligations on a straight-line basis over a term of one year from the date of sale. It costs Apple $540 to manufacture the iPhone. On August 3, Apple sold and shipped 100,000 iPhone bundles to customers. All customers paid in cash on the date of sale. ASSETS LIABILITIES EQUITY + IMPACT ON CURRENT PERIOD CASH FLOW Net Impact on Current Period Cash Flow = IMPACT ON CURRENT PERIOD EARNINGS Net Impact on Current Period Earnings CUMULATIVE IMPACT ON BALANCE SHEET ELEMENTS ASSETS: Cumulative Change in Assets + LIABILITIES + EQUITY: + Cumulative Change in Liabilities + Equity CHAPTER 17 HANDOUT - REVENUE RECOGNITION | PAGE

REQUREMENT 2: Complate the nocessary accounting entres for Apple lne, related to the morth of August. Then show how the August trantactions would impact the cash flow, eamings, and batance sheot elemems. You may not use all t-accourts ghen. REVENUE CONTRACT: Apple inc sells the iPhone 14 Pro for $1,000 to customers. Included in this $1,000 bundled sales: price is Apple's commitment to automafcally updating its soltware when needed and provideng other sorvicas such as Siri. iCloud and Maps. Apple has determined that the stands-alone sales price of each of the thitee performance obligations is as follows: - The iphone can be sold separately for $912. - the updated software for a 1-year ferm is worth $60, and - the inclusion of senvees such as Siri, iCloud and Maps for a 1-year term is worth $228 Apple recognizas the revenue and cost related to the physical phone once the product is shipped. Apple recognizes tevenue for the other two performance obligations on a straighefine basis over a term of one year from the date of sale. Il costs Appie $540 to manufacture the iPhone. On August 3, Apple sold and shipped 100,000 iPhone bundes to customers. All customers paid in cash on the date of sale IMPACT ON CURRENT PERIOD CASH FLOW Net Impact on Current Period Cash Flow IMPACT ON CURRENT PERIOD EARNINGS