Cash 320,000 0 Contract Asset 3,193 0 x Sales Revenue-Unused Merchandise Credit 0 316,807 x To...

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Cash 320,000 0 Contract Asset 3,193 0 x Sales Revenue-Unused Merchandise Credit 0 316,807 x To record the sale of merchandise. Cost of Goods Sold Inventory To record the cost of sale of merchandise. 144,000 0 0 144,000 Q2 cont. c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $18,400. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 x 0 0 0 x 0x d. If the coupons, instead, offered 20% off of future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0x 0 0x 0 0 x 0 0 x To record the cost of sale of merchandise. Check Question 2 Partially correct Mark 1.05 out of 2.00 Flag question Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $320,000 resulting in 3,200 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. Two performance obligations b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Transaction Price as Stated Standalone Selling Price Merchandise $ 320,000 $ 320,000 $ Customer option-merchandise credit 0 3,226 $ 320,000 $ 323,226 $ Cash Account Name Contract Asset Sales Revenue-Unused Merchandise Credit To record the sale of merchandise. Cost of Goods Sold Inventory To record the cost of sale of merchandise. Debit Credit 320,000 3,193 0 0 x 316,807 x 144,000 0 0 144,000 Total Allocated Transaction Price (rounded) 316,807 3,193 320,000 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $18,400. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name Debit Credit 0 0 x 0 0 x 0x Question 3 Not complete Marked out of 2.00 Flag question Allocating a Transaction Price and Recording Revenue and Cost of Revenue A retailer initiates an advertising campaign, which allows a customer to receive a coupon for a free gaming system DVD with the purchase of three gaming system DVDs in a single purchase for $15 customer fills out a request form and mails it to the retailer prior to the expiration date. The retailer estimates, based on recent experience with similar promotions, that 80% of the customers will system DVD. The cost of the DVD to the retailer is $4, and its standalone selling price is $5. Required a. How is the consideration allocated to the performance obligations in the revenue contract? Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Performance Obligations DVD $ Coupon Offer $ Transaction Price as Stated Standalone Selling Price 0 $ 0 $ 0 0 $ 0 $ 0 $ Allocated Transaction Price (rounded) 0 0 0 b. Prepare the journal entry for sales and cost of sales for 8 sales transactions in which 3 gaming system DVDs were sold as part of each transaction. Note: Round amounts to the nearest whole dollar. Account Name To record sales Dr. Cr. 0 0 0 0 0 0 Account Name Dr. Cr. 0 0 0 To record cost of sales c. Assume the retailer has no past experience to estimate the amount of redemption. (1) Show how the consideration is allocated to the performance obligations in the revenue contract. Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Performance Obligations DVD $ Coupon Offer $ Transaction Price as Stated 0 $ 0 0 $ Standalone Selling Price 0 $ 0 $ 0 $ Allocated Transaction Price (rounded) 0 0 0 (2) Prepare the journal entry for sales and cost of sales for 8 sales transactions in which 3 gaming system DVDs were sold as part of each transaction. Note: Round amounts to the nearest whole dollar. Account Name To record sales Dr. Cr. 0 0 0 0 0 0 Account Name Dr. Cr. 0 0 0 0 To record cost of sales Check Previous Save Answers cont Question 4 Not complete Marked out of 1.00 Flag question Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over Time Watson Construction Company contracted to build a plant for $1,000,000. Construction started in January of Year 1 and was completed in November of Year 2. Watson uses the cost-to-cost method to measure the completion of its performance obligations. Data relating to the contract follow. As of December 31 Costs incurred Year 1 Year 2 $580,000 $240,000 Estimated costs to complete 250,000 Billings Cash collections 540,000 460,000 500,000 500,000 Required Point in Time Over Time a. Provide the Year 1 and Year 2 journal entries for Watson assuming revenue is recognized at a point in time. Provide entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) revenues and expenses. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Year 1 1. Account Name Dr. Cr. 0 0 0 To record constructions costs incurred 2. 0 0 0 0 To record progress billings 3. To record collections 4. Year 2 0 0 0 0 0 0 0 0 To recognize revenues 0 0 0 0 To recognize expenses Account Name Dr. Cr. 4. Year 2 1. 0 0 0 0 To recognize revenues 0 0 0 0 To recognize expenses Account Name Dr. Cr. 0 0 0 0 To record constructions costs incurred 2. 0 0 0 0 To record progress billings 3. To record collections 4. Check To recognize revenues 0 0 0 0 0 0 0 0 0 0 0 0 To recognize expenses Q4 cont Question 5 Not complete Marked out of 1.00 Flag question On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $600,000 Progress billings $285,000 Cash collections Estimated costs to complete $262,500 $600,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. Note: If a journal entry isn't required on any of the dates shown, select "N/Adebit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. Cr. 0 0 0 0 0 0 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. Cr. 0 0 0 0 Cash 320,000 0 Contract Asset 3,193 0 x Sales Revenue-Unused Merchandise Credit 0 316,807 x To record the sale of merchandise. Cost of Goods Sold Inventory To record the cost of sale of merchandise. 144,000 0 0 144,000 Q2 cont. c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $18,400. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name To receognize revenue. Debit Credit 0 0 x 0 0 0 x 0x d. If the coupons, instead, offered 20% off of future purchases (otherwise, same facts as before), how would the answers change to parts a and b, if at all? Account Name To record the sale of merchandise. Debit Credit 0 0x 0 0x 0 0 x 0 0 x To record the cost of sale of merchandise. Check Question 2 Partially correct Mark 1.05 out of 2.00 Flag question Identifying and Recording Customer Option for Additional Merchandise Pets Inc. launches a new advertising promotion where, for each purchase over $30, it offers a coupon for a 35% discount on a future purchase. There is a limit of one coupon per customer. Pets Inc. estimates that 28% of customers receiving the coupon will redeem the coupon on an average purchase of $24. Sales on the first day of the one-week promotional period totaled $320,000 resulting in 3,200 coupons distributed. Assume all sales were cash sales. Cost of sales is 45% of the selling price. a. Determine how many performance obligations are included in a sales transaction during the advertising promotion program. Assume that coupons readily available to the public online or in company fliers have a maximum discount of 20%. Two performance obligations b. Record the journal entry to record revenue in the first day of the promotion period using the relative percentages to allocate standalone selling prices. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. Performance Obligations Transaction Price as Stated Standalone Selling Price Merchandise $ 320,000 $ 320,000 $ Customer option-merchandise credit 0 3,226 $ 320,000 $ 323,226 $ Cash Account Name Contract Asset Sales Revenue-Unused Merchandise Credit To record the sale of merchandise. Cost of Goods Sold Inventory To record the cost of sale of merchandise. Debit Credit 320,000 3,193 0 0 x 316,807 x 144,000 0 0 144,000 Total Allocated Transaction Price (rounded) 316,807 3,193 320,000 c. Only 25% of the coupons were redeemed during the redemption period on qualifying purchases of $18,400. Record the entry for the redemption of the coupons, ignoring the cost entries. Account Name Debit Credit 0 0 x 0 0 x 0x Question 3 Not complete Marked out of 2.00 Flag question Allocating a Transaction Price and Recording Revenue and Cost of Revenue A retailer initiates an advertising campaign, which allows a customer to receive a coupon for a free gaming system DVD with the purchase of three gaming system DVDs in a single purchase for $15 customer fills out a request form and mails it to the retailer prior to the expiration date. The retailer estimates, based on recent experience with similar promotions, that 80% of the customers will system DVD. The cost of the DVD to the retailer is $4, and its standalone selling price is $5. Required a. How is the consideration allocated to the performance obligations in the revenue contract? Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Performance Obligations DVD $ Coupon Offer $ Transaction Price as Stated Standalone Selling Price 0 $ 0 $ 0 0 $ 0 $ 0 $ Allocated Transaction Price (rounded) 0 0 0 b. Prepare the journal entry for sales and cost of sales for 8 sales transactions in which 3 gaming system DVDs were sold as part of each transaction. Note: Round amounts to the nearest whole dollar. Account Name To record sales Dr. Cr. 0 0 0 0 0 0 Account Name Dr. Cr. 0 0 0 To record cost of sales c. Assume the retailer has no past experience to estimate the amount of redemption. (1) Show how the consideration is allocated to the performance obligations in the revenue contract. Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Note: Enter the allocated transaction prices in dollars and cents, rounded to the nearest penny. Performance Obligations DVD $ Coupon Offer $ Transaction Price as Stated 0 $ 0 0 $ Standalone Selling Price 0 $ 0 $ 0 $ Allocated Transaction Price (rounded) 0 0 0 (2) Prepare the journal entry for sales and cost of sales for 8 sales transactions in which 3 gaming system DVDs were sold as part of each transaction. Note: Round amounts to the nearest whole dollar. Account Name To record sales Dr. Cr. 0 0 0 0 0 0 Account Name Dr. Cr. 0 0 0 0 To record cost of sales Check Previous Save Answers cont Question 4 Not complete Marked out of 1.00 Flag question Recording Long-Term Construction: Recognize Revenue at a Point in Time and Over Time Watson Construction Company contracted to build a plant for $1,000,000. Construction started in January of Year 1 and was completed in November of Year 2. Watson uses the cost-to-cost method to measure the completion of its performance obligations. Data relating to the contract follow. As of December 31 Costs incurred Year 1 Year 2 $580,000 $240,000 Estimated costs to complete 250,000 Billings Cash collections 540,000 460,000 500,000 500,000 Required Point in Time Over Time a. Provide the Year 1 and Year 2 journal entries for Watson assuming revenue is recognized at a point in time. Provide entries for (1) construction costs incurred, (2) progress billings, (3) cash collections, and (4) revenues and expenses. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Year 1 1. Account Name Dr. Cr. 0 0 0 To record constructions costs incurred 2. 0 0 0 0 To record progress billings 3. To record collections 4. Year 2 0 0 0 0 0 0 0 0 To recognize revenues 0 0 0 0 To recognize expenses Account Name Dr. Cr. 4. Year 2 1. 0 0 0 0 To recognize revenues 0 0 0 0 To recognize expenses Account Name Dr. Cr. 0 0 0 0 To record constructions costs incurred 2. 0 0 0 0 To record progress billings 3. To record collections 4. Check To recognize revenues 0 0 0 0 0 0 0 0 0 0 0 0 To recognize expenses Q4 cont Question 5 Not complete Marked out of 1.00 Flag question On January 1, Miller Construction Company contracted to build a parking lot for the city of St. Louis for $1,125,000. The following transactions and estimates relate to this contract. Construction costs incurred during 2020 $600,000 Progress billings $285,000 Cash collections Estimated costs to complete $262,500 $600,000 Required a. Prepare the journal entry to record profit or loss assuming revenue is recognized over time. Note: If a journal entry isn't required on any of the dates shown, select "N/Adebit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. Cr. 0 0 0 0 0 0 b. Prepare the journal entry to record profit or loss assuming revenue is recognized at a point in time. Note: If a journal entry isn't required on any of the dates shown, select "N/A-debit" and "N/A-credit" as the account names and leave the Dr. and Cr. answers blank (zero). Account Name To recognize revenues and expenses Dr. Cr. 0 0 0 0