32. Sarjit Systems sold software to a customer for $147,000. As part of the contract, Sarjit promises to provide free technical support over the next six months. Sarjit sells the same software without technical support for $127,500 and a stand-alone six-month technical support contract for $22,500, so these products would sell for $150,000 if sold separately.

Prepare Sarjits journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the sale of the software.:

3.

Aria Perfume, Inc., sold 3,160 boxes of white musk soap during January of 2016 at the price of $130 per box. The company offers a full refund for any product returned within 30 days from the date of purchase. Based on historical experience, Aria expects that 3% of sales will be returned.

How many performance obligations are there in each sale of a box of soap? How much revenue should Aria recognize in January?

Number of performance obligations in the contract	?
January revenue	?

4.

GoodBuy sells gift cards redeemable for GoodBuy products either in store or online. During 2016, GoodBuy sold $1,040,000 of gift cards, and $900,000 of the gift cards were redeemed for products. As of December 31, 2016, $33,000 of the remaining gift cards had passed the date at which GoodBuy concludes that the cards will never be redeemed.

How much gift card revenue should GoodBuy recognize in 2016?

Revenue: ?

5.

A construction company entered into a fixed-price contract to build an office building for $30 million. Construction costs incurred during the first year were $10 million and estimated costs to complete at the end of the year were $15 million.

How much revenue will appear in the companys income statement in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)

Revenue: ?

How much gross profit or loss will the company recognize in the first year using the percentage-of-completion method? (Enter your answer in whole dollars.)

6.

The 2016 income statement for Anderson TV and Appliance reported sales revenue of $250,000 and net income of $70,000. Average total assets for 2016 was $400,000. Shareholders equity at the beginning of the year was $300,000 and $10,000 was paid to shareholders as dividends. There were no other shareholders equity transactions that occurred during the year.

Calculate the profit margin on sales, return on assets, and return on shareholders' equity for 2016.

Profit Margin (%)
	Choose Numerator:	/	Choose Denominator:	=	Profit Margin
		/		=	Profit Margin
		/		=	0
Return on Assets (%)
	Choose Numerator:	/	Choose Denominator:	=	Return on Assets
		/		=	Return on assets
		/		=	0
Return on Shareholders' Equity (%)
	Choose Numerator:	/	Choose Denominator:	=	Return on Shareholders' Equity
		/		=	Return on shareholders' equity
		/		=	0