Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 5, Problem 5.7BE
To determine
Performance obligation:
Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.
Prepayments:
Prepayment is the payment made by the customer before the supply of goods or services to the customer. In some contract, the prepayment is a nonrefundable amount which is paid by the customer.
To determine: The number of performance obligations that exist in the implied contract, when a customer registers for the services.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
eNOWv2 | Online teachin X
Assignment/takeAssignmentMain.do?inprogress=true
它☆
Maps
Facebook
Zoom
O Student Center
Bb Blackboard
WhatsApp G grammarly
unemployment
Sunny Hills Farm estimated its payroll for the coming year to be $102,000. Its workers' compensation insurance premium rate of 0.6%
is paid at the beginning of each quarter.
Required:
1. Calculate the estimated cost of workers' compensation insurance for the year.
2. Show the journal entry for the first quarterly payment on January 2, 20-.
If an amount box does not require an entry, leave it blank.
Page:
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 Jan. 2
1
2.
2.
%24
Question content area top
Part 1
Latesha Moore has a choice at work between a traditional health insurance plan that pays 80 percent of the cost of doctor visits after a $250 deductible and an HMO that charges a
$55
co-payment per visit plus a
$1919
monthly premium deduction from her paycheck. Latesha anticipates seeing a doctor once a month for her high blood pressure. The cost of each office visit is
$6060.
She normally sees the doctor an average of three times a year for other health concerns. Comment on the difference in costs between the two health-care plans and the advantages and disadvantages of each.
Question content area bottom
Part 1
Latesha would pay an annual out-of-pocket cost with the traditional plan of
$380380.
(Round to the nearest dollar.)
Part 2
Latesha would pay an annual out-of-pocket cost with the HMO plan of
Overview
Plans
Resources
Follow-up and reports
360° reports
PFR Final Exam
01-10 11
Question 43
Paying the minimum amount every month on a credit card will
Your answer:
pay a large percentage of the total amount owed every month
make the final amount paid substantlally higher than the amount initlally charged
O Help the cardholder create a plan for paying off a credit card in a decent amount of time.
Allow the card holder to avoid paying any interest charges.
Clear answer
Back
Next
Play Sto
Chapter 5 Solutions
Intermediate Accounting
Ch. 5 - What are the five key steps a company follows to...Ch. 5 - What indicators suggest that a performance...Ch. 5 - What criteria determine whether a company can...Ch. 5 - We recognize service revenue either at one point...Ch. 5 - What characteristics make a good or service a...Ch. 5 - Prob. 5.6QCh. 5 - What must a contract include for the contract to...Ch. 5 - How might the definition of probable affect...Ch. 5 - When a contract includes an option to buy...Ch. 5 - Prob. 5.10Q
Ch. 5 - Prob. 5.11QCh. 5 - Is a customers right to return merchandise a...Ch. 5 - Prob. 5.13QCh. 5 - Under what circumstances should sellers consider...Ch. 5 - When should a seller view a payment to its...Ch. 5 - What are three methods for estimating stand-alone...Ch. 5 - When is revenue recognized with respect to...Ch. 5 - In a franchise arrangement, what are a franchisors...Ch. 5 - When does a company typically recognize revenue...Ch. 5 - Prob. 5.20QCh. 5 - Prob. 5.21QCh. 5 - Prob. 5.22QCh. 5 - Must bad debt expense be reported on its own line...Ch. 5 - Explain the difference between contract assets,...Ch. 5 - Explain how to account for revenue on a long-term...Ch. 5 - Prob. 5.26QCh. 5 - Prob. 5.27QCh. 5 - What are the two general criteria that must be...Ch. 5 - Explain why, in most cases, a seller recognizes...Ch. 5 - Revenue recognition for most installment sales...Ch. 5 - Prob. 5.31QCh. 5 - How does a company report deferred gross profit...Ch. 5 - Prob. 5.33QCh. 5 - Briefly describe the guidelines for recognizing...Ch. 5 - Prob. 5.35QCh. 5 - Briefly describe the guidelines provided by GAAP...Ch. 5 - Revenue recognition at a point in time LO52 On...Ch. 5 - Timing of revenue recognition LO53 Estate...Ch. 5 - Prob. 5.3BECh. 5 - Allocating the transaction price LO54 Sarjit...Ch. 5 - Existence of a contract LO5-5 Tulane Tires wrote...Ch. 5 - Prob. 5.6BECh. 5 - Prob. 5.7BECh. 5 - Performance obligations; warranties LO55 Vroom...Ch. 5 - Prob. 5.9BECh. 5 - Prob. 5.10BECh. 5 - Performance obligations; construction LO55...Ch. 5 - Prob. 5.12BECh. 5 - Prob. 5.13BECh. 5 - Variable consideration LO56 Leo Consulting enters...Ch. 5 - Variable consideration LO56 In January 2018,...Ch. 5 - Prob. 5.16BECh. 5 - Prob. 5.17BECh. 5 - Payment s by the seller to the customer LO56...Ch. 5 - Estimating stand-alone selling prices: adjusted...Ch. 5 - Estimating stand-alone selling prices: expected...Ch. 5 - Estimating stand-alone selling prices; residual...Ch. 5 - Timing of revenue recognition; licenses LO57 Saar...Ch. 5 - Prob. 5.23BECh. 5 - Prob. 5.24BECh. 5 - Timing of revenue recognition; franchises LO57...Ch. 5 - Timing of revenue recognition; bill-and-hold LO57...Ch. 5 - Prob. 5.27BECh. 5 - Prob. 5.28BECh. 5 - Contract assets and contract liabilities LO58...Ch. 5 - Prob. 5.30BECh. 5 - Long-term contract; revenue recognition over time;...Ch. 5 - Prob. 5.32BECh. 5 - Long-term contract; revenue recognition upon...Ch. 5 - Long-term contract; revenue recognition; loss on...Ch. 5 - Installment sales method On July 1, 2018, Apache...Ch. 5 - Prob. 5.36BECh. 5 - Cost recovery method Refer to the situation...Ch. 5 - Prob. 5.38BECh. 5 - Prob. 5.39BECh. 5 - Revenue recognition; software contracts under IFRS...Ch. 5 - Prob. 5.41BECh. 5 - Prob. 5.1ECh. 5 - Prob. 5.2ECh. 5 - Allocating transaction price LO54 Video Planet...Ch. 5 - Prob. 5.4ECh. 5 - Prob. 5.5ECh. 5 - Prob. 5.6ECh. 5 - Prob. 5.7ECh. 5 - Prob. 5.8ECh. 5 - Prob. 5.9ECh. 5 - Variable considerationmost likely amount; change...Ch. 5 - Variable considerationexpected value; change in...Ch. 5 - Prob. 5.12ECh. 5 - Approaches for estimating stand-alone selling...Ch. 5 - FASB codification research LO56, LO57 Access the...Ch. 5 - Franchises; residual method LO56, LO57 Monitor...Ch. 5 - FASB codification research LO58 Access the FASB...Ch. 5 - Long-term contract; revenue recognition over time...Ch. 5 - Long-term contract; revenue recognition over time...Ch. 5 - Long-term contract; revenue recognition over time;...Ch. 5 - Long-term contract; revenue recognition upon...Ch. 5 - Income (loss) recognition; Long-term contract;...Ch. 5 - Long-term contract; revenue recognition over time;...Ch. 5 - Installment sales method Charter Corporation,...Ch. 5 - Installment sales method; journal entries [This is...Ch. 5 - Installment sales; alternative recognition methods...Ch. 5 - Journal entries; point of delivery, installment...Ch. 5 - Prob. 5.27ECh. 5 - Prob. 5.28ECh. 5 - Prob. 5.29ECh. 5 - Prob. 5.30ECh. 5 - Prob. 5.31ECh. 5 - Prob. 5.32ECh. 5 - Prob. 5.33ECh. 5 - Prob. 5.34ECh. 5 - Prob. 5.35ECh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2PCh. 5 - Prob. 5.3PCh. 5 - Prob. 5.4PCh. 5 - Prob. 5.5PCh. 5 - Variable consideration; change of estimate LO53,...Ch. 5 - Prob. 5.7PCh. 5 - Prob. 5.8PCh. 5 - Prob. 5.9PCh. 5 - Long-term contract; revenue recognition over time ...Ch. 5 - Long-term contract; revenue recognition upon...Ch. 5 - Long-term contract; revenue recognized over time;...Ch. 5 - Long-term contract; revenue recognition over time...Ch. 5 - Income statement presentation; installment sales...Ch. 5 - Prob. 5.15PCh. 5 - Installment sales; alternative recognition methods...Ch. 5 - Installment sales and cost recovery methods...Ch. 5 - Prob. 5.18PCh. 5 - Franchise sales; installment sales method Olive...Ch. 5 - Prob. 5.1BYPCh. 5 - Judgment Case 52 Satisfaction of performance...Ch. 5 - Judgment Case 53 Satisfaction of performance...Ch. 5 - Prob. 5.4BYPCh. 5 - Prob. 5.5BYPCh. 5 - Prob. 5.6BYPCh. 5 - Prob. 5.8BYPCh. 5 - Prob. 5.9BYPCh. 5 - Prob. 5.10BYPCh. 5 - Prob. 5.11BYPCh. 5 - Prob. 5.12BYPCh. 5 - Prob. 5.13BYPCh. 5 - Prob. 5.14BYPCh. 5 - Prob. 5.15BYPCh. 5 - Prob. 5.16BYPCh. 5 - Prob. 5.19BYPCh. 5 - Prob. 1CCTC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20 times if the customer pays $700 in advance. Required: Prepare the journal entry to record (1) the customers' prepayment of S700 and (2) Brands mowing of the lawn one time.arrow_forwardOb Going concern Assumption Oc Matching Concept d Consistency Principle Clear my choice Who among the following uses accounting information to know the possible wage increments? a. Bankers Ob. Customers Oc. Employees Od. Owners Next page MTem a New Window/ Micro DOLL CH TWarrow_forwardCourses Mastering Chernie X 2MateryCheme X loud/modules/unproctoredTest.QuestionSheet McCraith-Sectic x Updte Help Caroline Achienge S01243611acadceduLogout all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises Gradebook. Extemat kercises Remaining Time Unimted Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are taxed at a rate of 27%, then how much will you have when you retire? Round all answers to 2 decimal places. Before taxes retirement amount $ Number After taxes retirement amount $ Number Submit Assignment Quit & Save Васк Question Menu 4 Next 38°F Partly sunny A 0) 411 PM 11/19/202 end home delete prt sc 144 4+ 4- 40 num lock backspace & 8. 6. 7. home |近arrow_forward
- ter 15 Assignment i 3 S W Check my work mode: This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Required: Saved Exercise 15-15 Determining postretirement (health care) benefits expense and obligation (LO 15-7) Jones Company has a postretirement benefit (health care) plan for its employees. On January 1, 20X1, the balance in the Accumulated postretirement benefit obligation account was $300 million. The assumed discount rate-for purposes of determining postretirement obligations and expenses-is 8%. Jones does not prefund postretirement benefits, so there are no plan assets. It created a $45 million prior service cost credit at the end of 20X0 when the company modified the health care plan to reduce the maximum benefits paid to each employee. This amount is being amortized over 15 years. The service cost component of postretirement benefits for 20X1 is $35 million. x Answer is complete but not entirely correct. Q Search…arrow_forwardPROGRAMS v SELF DEVELOPMENT E-LIBRARY ZAIN HANDBOOKS 8. 6. 10 11 12 13 14 15 16 A country has a total population of 17,000.000 inhabitants. and internet users penetration rate of 50%. Calculate the following: TIME LEFT 0:37:08 8:06 2/11arrow_forwardO Odysseyware Ô https://sfdr.owschools.com/owsoo/studentAssignment/index?eh=65534403 San Felipe Der RIO CISD- IS JALYN GARCIA Odysseyware LEARN MESSAGE HELP SIGN OUT Assignment - 1. Credit Scores and Loans Attempt 1 of 1 ASSIGNMENTS COURSES SECTION 3 OF 4 QUESTION 6 OF 8 1 2 4 5 >> Match the option with the lowest monthly payment to highest monthly payment. $12,000 loan with 1% simple 1. lowest payment interest over 7 years $7,500 loan with 4% simple interest 2. second highest payment over 5 years $8,500 loan with 2% simple 3. third highest payment interest over 6 years $10,000 loan with 3% simple 4. fourth highest payment interest over 4 years 9:19 PM 后 ENG 2/4/2021 P Type here to search Rarrow_forward
- 30 Assume that Mr Abdullah purchased a Laptop from LuLu Hyper market on 31st march 2021.The market gave the written promise to Mr Abdullah by mentioning that if any problem incur in the functionality of laptop within one year, the company will give free service to Abdullah. The written promise given by the company to Mr Abdullah is known as: a. Notes payable b. Cash receipt c. Notes receivable d. Warranty Clear my choicearrow_forward2022 SP CSR342 Week 6 Assignment Assignment 1. A. John will purchase Equinox EV ($35,000). John's credit score (FICO® Score) is 750. Based on the credit score, John can get 60 months auto-loan from WL Land Bank with 4.0% APR. John will pay the down payment as much as $5,000. B. Smith will purchase Equinox EV ($35,000). Smith's credit score (FICO Score) is 625. Based on the credit score, Smith can get 60 months auto-loan from WL Land Bank with 6.5% APR. Smith will pay the down payment as much as $5,000. [1] Explain who will pay more and how much pay more [no word limit] Correct answer existed but close answer will be considered as good; file on Brightspace (Excel WorkSheet 6.8). To compare John and Smith's cases, utilize the exc Even if it is named as mortgage amortization table, the auto payment (amortization plan) is totally same. Your answer should be like "John will pay less/more than Smith $-- per a month."arrow_forwardFile Edit View History Bookmarks Profiles estion 4 - Proctoring Enable X getproctorio.com/secured #lockdown ctoring Enabled: Chapter 6 Homework Assignm... i 4 kipped ic raw 511 F CUNY Login 2 Req 1 Req 2 to 4 #3 Complete this question by entering your answers in the tabs below. с Tab How many performance obligations are in this contract? Number of performance obligations $ Window Help st X 4 Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada. On March 1, 2024, Barrick Gold receives $150,000 from Citizen Bank and promises to deliver 95 units of certified 1-ounce gold bars on a future date. The contract states that ownership passes to the bank when Barrick Gold delivers the products to Brink's, a third-party carrier. In addition, Barrick Gold 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…arrow_forward
- Assignment 6.1: Session 6 Comprehensive Problem (Chapter 8) Instructions In this session, we have a 6-part comprehensive problem. Download the Session 6 Comprehensive Problem Templates below to complete the 6 required parts of the problem. You will need your Bergevin and MacQueen book for reference. Rancho Cucamonga Inc. began business on January 1, 2020. The firm earned $100 from sales in its first year of business. Rancho Cucamonga collected $90 of revenue earned in cash during 2020 and reported a $10 account receivable on its 2020 balance sheet. The firm paid $70 cash for operating expenses in 2020 and reported a $5 account payable for unpaid operating expenses on its 2020 balance sheet. Income tax laws only recognize cash collected from sales and cash paid for expenses as taxable items in the year collected or paid. Rancho Cucamonga also reported a $10 fine, paid in cash, to the federal government for unfair business practices. Generally accepted accounting principles allow firms…arrow_forwardb cengage mindtao - B X b cengage mindtap - B X A My Home * CengageNOWv2 | 0 x gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSes... o Academy Grill Supply On October 1, 2019, the company received a $50,000 promissory note from a customer. The annual interest rate is 6%. Principal and interest will be collected in cash at the maturity date of September 30, 2020. Refer to Academy Grill Supply. If the company's year ends December 31, 2019, an adjusting entry is needed to Oa, increase interest revenue by $2,250. Ob, increase notes receivable by $750. Oc. increase notes receivable by $2,250. Od, increase interest receivable by $750. 11:25 3/4/2 aarrow_forwardChapter 21 Assignment Back to Assignment Attempts: Average: 0/2 8. Credit union operation regulation Which of the following regulators is responsible for supervising federal credit unions? O The Federal Deposit Insurance Corporation O The National Credit Union Association The respective state agency O The National Credit Union Share Insurance Fund Which of the following scenarios best represents a premium that most credit unions pay for federal deposit insurance? O Riverfront Community Credit Union has $9 million in deposits and pays a premium of $135,000. O Alternate Credit Union has $8 million in deposits and pays a premium of $8,000. Delta Valley Credit Union has $6 million in deposits and pays a premium of $210,000. O Lowland Hills Community Credit Union has $8 million in deposits and pays a premium of $400,000.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning