Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $1,084,000, payment due at delivery. (b) Groupo sells goods on account to Grifols for $810,000, payment due in 30 days. (c) Groupo sells goods to Magnus for $540,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future. payments is $503,100. Indicate the transaction price for each of these situations and when revenue will be recognized. Transaction Price Revenue will be recognized (a) (b) $ V (c) $
Presented below are three revenue recognition situations. (a) Groupo sells goods to MTN for $1,084,000, payment due at delivery. (b) Groupo sells goods on account to Grifols for $810,000, payment due in 30 days. (c) Groupo sells goods to Magnus for $540,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future. payments is $503,100. Indicate the transaction price for each of these situations and when revenue will be recognized. Transaction Price Revenue will be recognized (a) (b) $ V (c) $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Presented below are three revenue recognition situations.
(a) Groupo sells goods to MTN for $1,084,000, payment due at delivery.
(b)
Groupo sells goods on account to Grifols for $810,000, payment due in 30 days.
Groupo sells goods to Magnus for $540,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future.
payments is $503,100.
(c)
Indicate the transaction price for each of these situations and when revenue will be recognized.
Transaction Price
Revenue will be recognized
(a)
(b)
$
(c)
$
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