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ompany separately sells home security equipment and 12 months of system monitoring service for $210 and $420, respectively. e company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately er the equipment is delivered and installed on January 1. quired: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the ncome statement for the period January 1-31. r all requirements, do not round intermediate calculations.) Revenue allocated to the equipment for each bundled sale (in dollars) Revenue allocated to the service for each bundled sale (in dollars) Sales Revenue to be reported in income statement (in dollars) Service Revenue to be reported in income statement (in dollars) + $ 360

ompany separately sells home security equipment and 12 months of system monitoring service for $210 and $420, respectively. e company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately er the equipment is delivered and installed on January 1. quired: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the ncome statement for the period January 1-31. r all requirements, do not round intermediate calculations.) Revenue allocated to the equipment for each bundled sale (in dollars) Revenue allocated to the service for each bundled sale (in dollars) Sales Revenue to be reported in income statement (in dollars) Service Revenue to be reported in income statement (in dollars) + $ 360

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ompany separately sells home security equipment and 12 months of system monitoring service for $210 and $420, respectively. company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately er the equipment is delivered and installed on January 1. quired: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the ncome statement for the period January 1-31. r all requirements, do not round intermediate calculations.) Revenue allocated to the equipment for each bundled sale (in dollars) Revenue allocated to the service for each bundled sale (in dollars) Sales Revenue to be reported in income statement (in dollars) Service Revenue to be reported in income statement (in dollars) $ 360
Transcribed Image Text:ompany separately sells home security equipment and 12 months of system monitoring service for $210 and $420, respectively. company sells an equipment/monitoring bundle on January 1 for a total price of $540. The monitoring service begins immediately er the equipment is delivered and installed on January 1. quired: Determine the dollars of revenue that should be allocated to the equipment for each bundled sale. Determine the dollars of revenue that should be allocated to the service for each bundled sale. Determine the dollars of Sales Revenue and Service Revenue from the January 1 bundled sale that should be reported in the ncome statement for the period January 1-31. r all requirements, do not round intermediate calculations.) Revenue allocated to the equipment for each bundled sale (in dollars) Revenue allocated to the service for each bundled sale (in dollars) Sales Revenue to be reported in income statement (in dollars) Service Revenue to be reported in income statement (in dollars) $ 360
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