Oriole Company sells goods that cost $320,000 to Sheffield Company for $435,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $35,600. The fair value of the goods is $409,400. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Sheffield Company pays Oriole $257,000 upon delivery of the goods and the balance at the completion of the installation.
Oriole Company sells goods that cost $320,000 to Sheffield Company for $435,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $35,600. The fair value of the goods is $409,400. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Sheffield Company pays Oriole $257,000 upon delivery of the goods and the balance at the completion of the installation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Oriole Company sells goods that cost $320,000 to Sheffield Company for $435,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $35,600. The fair value of the goods is $409,400. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Sheffield Company pays Oriole $257,000 upon delivery of the goods and the balance at the completion of the installation.
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Transcribed Image Text:Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Wildhorse. Assume IFRS is
followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Performance Obligation When?
How much?
Deliver goods
Installation
Total
eTextbook and Media
List of Accounts
Transcribed Image Text:Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Wildhorse. Assume IFRS is
followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Performance Obligation When?
How much?
Deliver goods
Installation
Total
eTextbook and Media
List of Accounts
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