On January 4, 2021 Alpha Computers signed a contract with Beta Protection, to install new computers...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On January 4, 2021 Alpha Computers signed a contract with Beta Protection, to install new computers at 40 work stations as well as connect to network all of the computers. Beta has also offered to provide service support for one year after the connection is complete. Alpha Computers uses the contact-based approach for revenue recognition. Contract details include the following: • The total contract price is $120,000 which comprises of $60,000 for hardware, $40,000 for connection and $20,000 for one year service commencing March 2nd, 2021. • The contract requires Alpha Computers to deliver and install the computers by February 18th, 2021, and network connection completed by March 2nd, 2021. • Beta agrees to pay $20,000 deposit on signing, $50,000 upon the delivery of the computers and the balance after the network connection is complete, on March 2nd, 2021. Use the 5-step approach to revenue recognition under the contract-based approach and recommend how Alpha Computers should record cash received and when to recognize different types of revenues. On January 4, 2021 Alpha Computers signed a contract with Beta Protection, to install new computers at 40 work stations as well as connect to network all of the computers. Beta has also offered to provide service support for one year after the connection is complete. Alpha Computers uses the contact-based approach for revenue recognition. Contract details include the following: • The total contract price is $120,000 which comprises of $60,000 for hardware, $40,000 for connection and $20,000 for one year service commencing March 2nd, 2021. • The contract requires Alpha Computers to deliver and install the computers by February 18th, 2021, and network connection completed by March 2nd, 2021. • Beta agrees to pay $20,000 deposit on signing, $50,000 upon the delivery of the computers and the balance after the network connection is complete, on March 2nd, 2021. Use the 5-step approach to revenue recognition under the contract-based approach and recommend how Alpha Computers should record cash received and when to recognize different types of revenues.
Expert Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date:
Students also viewed these accounting questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
9. What will the following code print on the console? int main() { } int num = 4; cout < < (num & 3 == 0 ? "first" : "second"); return 0; a. second b. first c. There is a syntax error d. It will...
-
From the data in Table 20.3 determine the radius of the smallest cation that can have (a) Six fold and (b) Eightfold coordination with the K+ ion.
-
(a) Three dates are important in connection with cash dividends. Identify these dates, and explain their significance to the corporation and its stockholders. (b) Identify the accounting entries that...
-
Which type of bond is unsecured? a. Common bond b. Mortgage bond c. Serial bond d. Debenture bond
-
Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. Chelene had been a caregiver for Martas eighty-year-old mother, Janis, for nine...
-
Mushi is the retired CEO of a large pharmaceutical company and currently owns $2M worth of shares in his company, which he had previously received as part of his compensation package. Mushi is not...
-
Perform the test in Problem 8.44 using both the raw and ln scale, and report a p-value. Are there any advantages to using the raw or the ln scale? Renal Disease Ten patients with advanced diabetic...
-
In computer forensics, you are often confronted with a different organisation of multi-byte values. Two common ways to order the bytes are big-endian (e.g. SUN Sparc, Apple) and little-endian (e.g....
-
On January 1, 2013, a machine was purchased for \($90\),000. The machine has an estimated residual value of \($6\),000 and an estimated useful life of 5 years. The machine can operate for 100,000...
-
On June 30, 2015, your client, Ferry Company, was granted two patents covering plastic cartons that it had been producing and marketing profitably for the past 3 years. One patent covers the...
-
Professional Research King Company is contemplating the purchase of a smaller company, which is a distributor of Kings products. Top management of King is convinced that the acquisition will result...
-
Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2015. 1. The actuarial present value of future benefits...
-
Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2015, Tyler entered into a 3-year service contract with Walleye...
-
The following information describes a manufacturing system: Daily, demand is 1,160 units. Replenishment lead time is 1.4 days. A 1.7 day safety stock is desired. Products are stored in containers...
-
The Higher the time period of the financial security the higher the. ............... risk. O a. Maturity O b. Default and Maturity Oc. Default O d. Liquidity
-
A balanced scorecard is a set of two or more performance measures. Do you agree? Why or why not?
-
Marvin's Kitchen Supply delivers restaurant supplies throughout the city. The firm adds 10 percent to the cost of the supplies to cover the delivery cost. The delivery fee is meant to cover the cost...
-
Andreasen Corporation manufactures thermostats for office buildings. The following is the cost of each unit: Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
-
The simply supported beam is composed of two W12 \(\times 22\) sections built up as shown. Determine if the beam will safely support a loading of \(w=2 \mathrm{kip} / \mathrm{ft}\). The allowable...
-
If \(a=3 \mathrm{in}\). and the wood has an allowable normal stress of \(\sigma_{\text {allow }}=1.5 \mathrm{ksi}\), and an allowable shear stress of \(\tau_{\text {allow }}=150 \mathrm{psi}\),...
-
If \(P=800 \mathrm{lb}\), determine the minimum dimension \(a\) of the beam's cross section to the nearest \(\frac{1}{8}\) in. to safely support the load. The wood species has an allowable normal...
Study smarter with the SolutionInn App