On March 1, 2021 Soccer, Incorporated enters into a contract with a major U.S. sports distributor to design and distribute soccer training equipment. Under the terms of the contract, the customer will pay $300,000 to Soccer Inc. on July 1, 2022. Soccer, Inc. will deliver the equipment on June 1, 2021. The contract price is $300,000 and the interest incurred on similar financing agreements in the industry is $15,000. Soccer, Inc. delivered the equipment as specified in the contract on June 1, 2021. What is the transaction price? Is there interest expense or interest income included in the price
On March 1, 2021 Soccer, Incorporated enters into a contract with a major U.S. sports distributor to design and distribute soccer training equipment. Under the terms of the contract, the customer will pay $300,000 to Soccer Inc. on July 1, 2022. Soccer, Inc. will deliver the equipment on June 1, 2021. The contract price is $300,000 and the interest incurred on similar financing agreements in the industry is $15,000. Soccer, Inc. delivered the equipment as specified in the contract on June 1, 2021. What is the transaction price? Is there interest expense or interest income included in the price
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On March 1, 2021 Soccer, Incorporated enters into a contract with a major U.S. sports distributor to design and distribute soccer training equipment. Under the terms of the contract, the customer will pay $300,000 to Soccer Inc. on July 1, 2022. Soccer, Inc. will deliver the equipment on June 1, 2021. The contract price is $300,000 and the interest incurred on similar financing agreements in the industry is $15,000. Soccer, Inc. delivered the equipment as specified in the contract on June 1, 2021.
What is the transaction price?
Is there interest expense or interest income included in the price?
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