Enterprise Solutions Inc. licenses its productivity software to Blackmon Company for $ 100,000, payable at contract inception. Enterprise agrees to provide semiannual software upgrades over the 5 year length of the contract to enable Blackmon to benefit from any technological advancement. Enterprise concludes that the software license is not distinct from the promised upgrades. What journal entries are necessary for Enterprise to account for this transaction?
Answer to relevant QuestionsAssume the same facts as in RE17 8, except that Enterprise does not agree to provide software updates. What journal entry is necessary for Enterprise to record this transaction? On March 1, 2017, Elkhart enters into a new contract to build a specialized warehouse for $ 7 million. The promise to transfer the warehouse is determined to be a performance obligation. The contract states that if the ...Consider each of the following scenarios: a. A seller orally agrees with one of its best customers to deliver goods in exchange for $ 10,000. While the seller’s practice is to obtain a written sales agreement, the seller ...On January 1, 2017, Loud Company enters into a 2 year contract with a customer for an unlimited talk and 5 GB data wireless plan for $ 65 per month. The contract includes a smartphone for which the customer pays $ 299. Loud ...On January 1, 2017, ForeRunner Inc. enters into a contract with a sporting goods company to provide 100 GPS enabled watches for $ 25,000 ($ 250 per watch) over the next 6 months. On April 1, 2017, when 80 of the watches have ...
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