Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties Creative Computing sells a tablet computer called the Protab. The $620 sales price of a Protab Package includes the following • One Protab computer. · A 6-month limited warranty. This warranty guarantees that Creative will cover any costs that arise due to repairs or replacements associated with defective products for up to six months. • A coupon to purchase a Creative Probook e-book reader for $350, a price that represents a 30% discount from the regular Probook price of $500. It is expected that 20% of the discount coupons will be utlized. • A coupon to purchase a one-year extended warranty for $40. Customers can buy the extended warranty for $65 at other times if they do not use the $40 coupon. Creative estimates that 45% of customers will purchase an extended warranty. • Creative does not sell the Protab without the limited warranty, option to purchase a Probook, and the option to purchase an extended warranty, but eştimates that if it did so, a Protab alone would sell for $600. Required: 1. & 2. Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. 3. Prepare a journal entry to record sales of 120,000 Protab Packages. Complete this question by entering your answers in the tabs below. Req i and 2 Reg 3 Indicate below whether each item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Reg 1 and 2 Req 3 Indicate below whether each Item is a separate performance obligation and allocate the transaction price of 120,000 Protab Packages to the separate performance obligations in the contract. Percentage of Total Stand Alone Price Performance Item Descrption Obligation? Stand Alone Price Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 0. 0.00% Total stand alone price Percentage of Total Stand Alone Price Total Transaction Price Allocated Contract Price Item Descrption Protab tablet Limited 6-month warranty Option to purchase a Probook Option to purchase extended warranty 24 Total contract price Req 3 > Req 1 and 2 Reg 3 Prepare a Journal entry to record sales of 120,000 Protab Packages. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account fleld.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1. Cash Sales revenue Deferred revenue coupons Deferred revenue - extended warranties
Expert Answer:
Answer rating: 100% (QA)
Requirement 1 There are 3 performance obligations in the contract Delivery of protab is performance ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
Students also viewed these accounting questions
-
Creative Computing sells a tablet computer called the Protab. The $780 sales price of a Protab Package includes the following: ¢ One Protab computer. ¢ A 6-month limited warranty. This...
-
Complete the following chart by indicating whether each item is true or false. Explain your answers by referencing the overlap of rules appearing in Federal and most state income tax laws. True or...
-
Complete the following chart by indicating whether each item is true or false. Explain your answers by referencing the overlap of rules appearing in Federal and most state income tax laws. Item...
-
ME-1" Ltd. acquired 80% equity shares of You-2nd Ltd. on 30/04/2020 for a cost of GHS60,000. At that time the general reserves were GHe6,000 respectively.
-
a. Consider a bond issued at par. The annual coupon is 8 percent and frequency of coupon is semiannual. How would the YTM of this bond be reported in most of the European markets? b. The market price...
-
In Problems 6376, find an equation for each graph. 5 AA -4-2/ 2 4 6 8 10 x -5
-
Define COP of a refrigerator and a heat pump
-
Emily Honig, marketing manager for Romer Company, was puzzled by the outcome of two recent bids. The companys policy was to bid 150 percent of the full manufacturing cost. One job (labeled Job 97-28)...
-
700 The demand function for a widget is given by p = 80+ where p is the price of the widget in dollars and x is the number of items in thousands of In x items and x > 1. Find the marginal revenue...
-
A. Describe Spatial Technologys business model in terms of revenues, profits, and cash flows. B. What intellectual properly, if any, does Spatial Technology possess? C. Describe the experience and...
-
The current focus in many large organizations is to go global which can be interpreted as downsizing, re-engineering, and in general, a reduction in unionized employees.This week's discussion focuses...
-
An ADR has been issued where each ADR equals.1111 ordinary shares of the foreign issuer. If a client wished to buy enough ADRs to cover 100 ordinary shares, how many ADRs must be purchased? A B C D 1...
-
If you were to create a free body diagram for part OAC in the figure below you would put a force at A that... 0 0 0 0 10 in A( 10 in B 10 in 10 in 100 lbf C would have force components in the...
-
Which of the following is a true statement about both the IRC 6662A and 6662(b) understatement penalties? - Both were created by congress in 2004 to fight tax abuse - it is easier to establish a...
-
3. A person hits a ball 1 m above the ground at a 35 degree angle above the horizontal. The ball has an initial velocity of 15 m/s. Determine the following: A. The time it takes before the ball hits...
-
In the figure below what is/are the force and/or moment in the middle of member BC? 100 lbf - 6 in- Fy = 10 in lb Fy = 33.3 lb Fy= 100 lb Fx= 50 lb My= 600 inlb Fy = 10 N, Fx= 250 N --A -12 in C B 12...
-
- Give one example of using Layered architecture with explanation? -Explain the simple search engine works with diagram? -Give one example of using Object-based style with explanation? - Explain the...
-
Design and describe an application-level protocol to be used between an automatic teller machine and a bank's centralized computer. Your protocol should allow a user 's card and password to be...
-
Obtain the 2013 annual report of Unilever (www.Unilever.com). Assume that Unilever accounts for its investments according to IAS No. 39. Required: 1. Examine Unilever's Notes 17 and IS. Indicate the...
-
Caterpillar Inc. (CAT) is a world leader in the manufacture of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. CAT reported the following in a...
-
The following is from the 2016 annual report of Kaufman Chemicals, Inc.: Statements of Comprehensive Income Kaufman reports accumulated other comprehensive income in its balance sheet as a component...
-
The director of marketing of your organization asks for your advice regarding sponsorship deals she is contemplating. She has to choose from the following: a 15-year sponsorship paying \($100,000\)...
-
A bank offers customers the option of receiving interest compounded quarterly, semi-annually, or annually. If the rate of interest is the same, which is the best option for the customer?
-
An athlete signs a five-year endorsement deal with a prominent sponsor. Under this deal the athlete will receive \($5,000\) each year for the first three years and \($6,500\) each year for the final...
Study smarter with the SolutionInn App