Oriole Company sells goods that cost $290,000 to William Company for $445,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $36,400. The fair value of the goods is $418,600. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, William pays Oriole $265,000 on delivery of the goods and the balance at the completion of the installation. (a) Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Oriole. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.) Performance Obligation Deliver goods Installation Total eTextbook and Media List of Accounts Save for Later When? $ tA $ How much? Attempts: 0 of 3 used Submit Answer
Oriole Company sells goods that cost $290,000 to William Company for $445,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $36,400. The fair value of the goods is $418,600. The goods were delivered on March 1, 2023. Installation is considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, William pays Oriole $265,000 on delivery of the goods and the balance at the completion of the installation. (a) Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Oriole. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.) Performance Obligation Deliver goods Installation Total eTextbook and Media List of Accounts Save for Later When? $ tA $ How much? Attempts: 0 of 3 used Submit Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Oriole Company sells goods that cost $290,000 to William Company for $445,000 on January 2, 2023. The sales price includes an installation fee, which is valued at $36,400. The fair value of the goods is $418,600. The goods were delivered on March 1, 2023. Installation is
considered a separate performance obligation and was completed on June 18, 2023. Under the terms of the contract, William pays Oriole $265,000 on delivery of the goods and the balance at the completion of the installation.
(a)
Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Oriole. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25% and final answers to O decimal places, e.g. 5,275.)
Performance Obligation
Deliver goods
Installation
Total
eTextbook and Media
List of Accounts
Save for Later
When?
$
tA
$
How much?
Attempts: 0 of 3 used
Submit Answer
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