On March 1, 2021, Gold Examiner receives $166,000 from a local bank and promises to deliver...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On March 1, 2021, Gold Examiner receives $166,000 from a local bank and promises to deliver 96 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner 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 bar is $1,680 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $70 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 How many performance obligations are in this contract? Number of performance obligations Req 1 Req 2 to 4 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the receipt of cash by Gold Examiner. Date March 01, 2021 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal On March 1, 2021, Gold Examiner receives $166,000 from a local bank and promises to deliver 96 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brink's, a third-party carrier. In addition, Gold Examiner 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 bar is $1,680 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $70 per unit. Brink's picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1. Required: 1. How many performance obligations are in this contract? 2. to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 How many performance obligations are in this contract? Number of performance obligations Req 1 Req 2 to 4 > Complete this question by entering your answers in the tabs below. Req 1 Req 2 to 4 Prepare the journal entry Gold Examiner would record on March 1, March 30 and April 1. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 Record the receipt of cash by Gold Examiner. Date March 01, 2021 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal
Expert Answer:
Answer rating: 100% (QA)
Answer 1 There are two performance obligations in this contract the sale of the gold bars ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following schedule provides the norms for certain key ï¬nancial ratios in a given industry and the ratios for three companies in that industry. Required: (a) Evaluate the overall...
-
The following schedule provides information with which to draw both an aggregate demand curve and an aggregate supply curve. Both curves are assumed to be straight lines. Average Price )Dollar per...
-
Suppose all firms in a given industry have the same supply curve given by Si(p) = p/2. Plot and label the four industry supply curves generated by these firms if there are 1, 2, 3, or 4 firms...
-
During extension, why do we sometimes get joints (and veins) and other times shear fractures and faults?
-
Danny Liu is 20 years old and claimed as a dependent on his parents tax return. Compute Dannys taxable income in each of the following cases: a. Dannys only income item was $2,712 interest earned on...
-
Create a table of cell means for each of the following graphs. a. 086420 10 b. 10 8- C. 10 6- Factor A bl-b2 10 08642 Factor A bl b2 Factor A b1b2 d. " Factor A bl b2
-
A researcher wants to determine whether children are more likely to be born on certain days of the week. She will sample 350 births and record the day of the week for each. The null hypothesis is...
-
Reliant Umbrellas has been approached by Plumpton Variety Stores of Nevada. Plumpton has expressed interest in an initial purchase of 5,000 umbrellas at $10 each on Reliant?s standard terms of 2/30,...
-
Submit Fill in the missing values of the table below, based on a hurdle rate of 6%. Assume that each line is an independent case. (Round all answers to the nearest whole number except for "Return on...
-
Roberta Santos, age 41, is single and lives at 120 San-borne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for...
-
3. A project has a first cost 180,000 an estimated salvage value of $20,000 after 6 years, and other economic attributes as detailed in the table below. As the end of year 4 neared, the project had...
-
Distinguish between core privileges and specific privileges in physician credentialing.
-
Compare and contrast licensure and credentialing.
-
Is an expansion of EMTALA policies better or worse for patients?
-
Describe the steps in attaining state licensure for nurses.
-
Delineate the steps in attaining state licensure for physicians.
-
1 of 2 Lymphatic system and Immunity Pre-Laboratory 1. What would happen in the lymph nodes if we have the flu? 2. In a tonsillectomy, inflamed lymphoid nodules in the throat are removed. What would...
-
For all of the following words, if you move the first letter to the end of the word, and then spell the result backwards, you will get the original word: banana dresser grammar potato revive uneven...
-
Following are the line items, presented in random order, that were included in a recent income statement of Valimer Corporation: Selling and Administrative...
-
Who prepares a budget? Under what circumstances are lower-level employees involved in the budgetary process? What are the benets of involving lower-level employees?
-
Describe the rationale behind using job order costing and process costing. Provide examples of three types of companies that would use each.
-
When a predecessor auditor reissues the report on the prior period's financial statements at the request of the former client, the predecessor auditor should a. Indicate the introductory paragraph of...
-
When audited financial statements are presented in a client's document containing other information, the auditor should a. Perform inquiry and analytical procedures to ascertain whether the other...
-
Which of the following events occurring after the issuance of an auditor's report most likely would cause the auditor to make further inquiries about the previously issued financial statements? a. A...
Study smarter with the SolutionInn App