Question: This is all one question Exercise 6-5 (Algo) Performance obligations [LO6-2, 6-4, 6-5] On March 1, 2024, Gold Examiner receives $142,000 from a local bank
![6-5] On March 1, 2024, Gold Examiner receives $142,000 from a local](https://s3.amazonaws.com/si.experts.images/answers/2024/08/66ab5b92500fe_12966ab5b91c9755.jpg)



Exercise 6-5 (Algo) Performance obligations [LO6-2, 6-4, 6-5] On March 1, 2024, Gold Examiner receives $142,000 from a local bank and promises to deliver 96 units of certified 1-ounce 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 standalone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the standalone price of the replacement insurance service to be $60 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. How many performance obligations are in this contract? repare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/ev irst account field. Round your final answers to the nearest whole dollar amount. Journal entry worksheet 1 Record any necessary entry upon delivery of the gold bars to the bank. Note: Enter debits before credits. equired: How many performance obligations are in this contract? to 4. Prepare the journal entry Gold Examiner would record on March 1, March 30, nd April 1. Complete this question by entering your answers in the tabs below. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/eve first account field. Round your final answers to the nearest whole dollar amount. Journal entry worksheet Record the receipt of cash by Gold Examiner. Note: Enter debits before credits. On March 1, 2024, Gold Examiner receives $142,000 from a local bank and promises to deliver 96 units of certified 1-ounce 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 standalone price of a gold bar is $1,440 per unit, and Gold Examiner estimates the standalone price of the replacement insurance service to be $60 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. Prepare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/eve first account field. Round your final answers to the nearest whole dollar amount. Journal entry worksheet Record the receipt of cash by Gold Examiner. Note: Enter debits before credits. repare the journal entry Gold Examiner would record on March 1, March 30, and April 1. Note: Do not round intermediate calculations. If no entry is required for a transaction/ev irst account field. Round your final answers to the nearest whole dollar amount. Journal entry worksheet Record any necessary entry when Brink's has picked up the gold bars from Gold Examiner. Note: Enter debits before credits
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
