### Educational Content: Journal Entry for Software Sale**Context:**Workday, Inc. is an American company providing on-demand financial management, human capital management, and student information system software. A customer purchased software from Workday for $155,000. With this contract, Workday agreed to provide "free" technical support over the following six months. The same software without technical support would sell for $135,000, and a six-month standalone technical support contract would typically cost $45,000. If sold separately, these two products would sell for $180,000.**Task:**Prepare a journal entry to record the sale of the software.**Instructions:**- If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.**Journal Entry Worksheet:**1. **Transaction Explanation:** - Record the sale of software for cash.2. **Journal Entry Table:** - **Columns:** - **Transaction:** Lists the transaction number. - **General Journal:** Describes the specific transaction. - **Debit:** Amount debited in the transaction. - **Credit:** Amount credited in the transaction.3. **Actions:** - **Buttons Available:** - **Record entry:** Finalize the current journal entry inputs. - **Clear entry:** Remove all current entries for re-entry or correction. - **View general journal:** Examine the complete general journal for all recorded transactions.This instructional page provides a scenario for students to practice financial record-keeping by determining the correct method to log transactions as journal entries in accounting systems. **Educational Website Content:**---**Journal Entry Worksheet: Workday, Inc. Software Sale****Scenario Description:**Workday, Inc., a leading American company in on-demand financial management and human capital management solutions, along with Student Information System software, has made a software sale. A customer purchased the software for $155,000. As part of this contract, Workday also commits to delivering complimentary technical support over the next six months. Typically, the same software without this technical support is priced at $135,000, and the standalone six-month technical support would retail at $45,000. Therefore, if sold separately, these products would amount to $180,000.**Task:**Prepare Workday's journal entry to document the sale of the software.**Instructions:**1. **View Transaction List:** Access the list to cross-check the transaction details.2. **Record Journal Entry:** Utilize the journal entry worksheet provided below to make the necessary financial records.**Journal Entry Worksheet:**- **Entry Description:** - "Record the sale of software for cash."- **Transaction Entry Table:** | Transaction | General Journal | Debit | Credit | |-------------|-----------------|-------|--------| | | | | | | | | | |**Note:** Debit entries should precede credit entries.**Action Buttons:**- **Record Entry**: Finalize and record the entry.- **Clear Entry**: Erase current inputs to start over.- **View General Journal**: Access the complete journal for review.**Navigation:**- Current Page: 5 of 5- **Next/Previous**: Navigate to other worksheet pages as needed.**Additional Note:***If no journal entry is required for a specific transaction/event, please select "No journal entry required" in the first account field.*--- This content provides a structured approach to understanding and recording transactions for educational purposes.

Lets understand the basics. As per IFRS15 "Revenue from contract with cutomer", when standalone…

Workday, Inc., is an American on-demand financial management, human capital management and Student information system software company. Workday sold software to a customer for $155,000. As part of the contract, Workday promises to provide "free" technical support over the next six months. Workday sells the same software without technical support for $135,000 and a stand-alone six- month technical support contract for $45,000, so these products would sell for $180,000 if sold separately. Please prepare Workday's journal entry to record the sale of the software. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

Workday, Inc., is an American on-demand financial management, human capital management and Student information system software company. Workday sold software to a customer for $155,000. As part of the contract, Workday promises to provide "free" technical support over the next six months. Workday sells the same software without technical support for $135,000 and a stand-alone six- month technical support contract for $45,000, so these products would sell for $180,000 if sold separately. Please prepare Workday's journal entry to record the sale of the software. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On April 1st, Ma Construction entered into a contract of one-month duration to build a barn for Valley Properties. Ma is guaranteed to receive a base fee of $5,000 for its services in addition to a bonus depending on when the project is completed. Valley Properties created incentives for Ma to finish the barn as soon as they can without jeopardizing the structural integrity of the barn. Valley offered to pay an additional 30% of the base fee if the project finished 2 weeks early and 10% if the project finished a week early. The probability of finishing 2 weeks early is 30% and the probability of finishing a week early is 60%.What is the expected transaction price with variable consideration estimated as the most likely amount? Group of answer choices $5,000 $5,750 $5,500 $4,750
AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer A. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows:- After signing the contract, clients pay a deposit of CU 10,000 each.- Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each.- Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. There is no…
A telecommunications company enters into a contract with a customer. Under the contract, the company promises to provide to the customer 4 GB data, 300 minutes of talk time, and 500 texts for $36. Required: A) A company sells mobile phone sets for $99 each. The company’s cost of each phone set is $70. The phone set became very popular with its customers. Near the end of the financial year, 5000 customers purchased the phone set from the company. The company allows its customers to return the phone set within 14 days if they have not unpacked the set. The return period has not expired for any phone set sold by the end of the year. The company expects, based on its past experience, that 1% of its customers will return the phone set. Required: i) Prepare the journal entries in the books of the company to record the transaction. ii) Explain why the transaction is recorded in this manner using NZ IFRS 15 requirements. Answer all the subparts A,i and ii.if answered within 30mins,it would…
AD Construction, a property developer, is building a property complex consisting of 50 apartments. Apartments are similar in size and proportion - however, can be adapted to suit client needs. AD Construction enters into a contract with customer B. The client wants to buy an apartment and agrees to a total price of CU100,000 per apartment. The payment schedule is as follows: After signing the contract, clients pay a deposit of CU 10,000 each. Milestone: 1 year before the planned completion, AD Construction will send a progress report to the client and the client will have to pay CU 50,000 each. Completion: After construction is completed, the legal ownership of the apartment is transferred to the client and they pay the remaining amount of CU40,000 each. The assumed construction period is 2 years from the contract date. AD Construction has the right to withhold payment from any client in the event that that client fails to pay for the contract prior to its completion. The contract…
Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Larkspur sells $5,700 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Larkspur for TeleExpress lines over the three months is $2,100. Indicate how much income Larkspur should recognize in January, February, March, and April under IFRS. (Do not leave any answer field blank. Enter O for amounts.) Month Income January $ February $ March 2$ April 2$
Gilroy Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,140. The freight and installation costs for the equipment are $660. If purchased, annual repairs and maintenance are estimated to be $410 per year over the four-year useful life of the equipment. Alternatively, Gilroy can lease the equipment from a domestic supplier for $1,540 per year for four years, with no additional costs. Prepare a differential analysis dated December 11 to determine whether Gilroy should lease (Alternative 1) or purchase (Alternative 2) the equipment. (Hint: This is a lease-or-buy decision, which must be analyzed from the perspective of the equipment user, as opposed to the equipment owner.) If an amount is zero, enter "0". Differential Analysis Lease Machine (Alt. 1) or Buy Machine (Alt. 2) December 11 Lease Machine(Alternative 1) Buy Machine(Alternative 2) Differential Effecton Income(Alternative 2) Revenues $0 $0 $0 Costs:…
Fidelity Life Insurance has a document imaging system that needs replacement. A local salesperson quoted a cost of $10,000 with an estimatedsalvage of $900 after 5 or more years. If the system is expected to save $1700 per year in clerical time, find the payback time at 8% per year. As a practice, the office manager purchases equipment only when the payback is less than 6 years. Otherwise, he prefers to lease. Should the imaging system be purchased or leased?
Sullivan Software sells packages of a software program and one year's worth of technical support for $500. Its packaging lists the $500 sales price as comprised of a software program and technical support. All of Sullivan's sales are for cash, and there are no returns. Sullivan sells the software program separately for $475 and offers a year of technical support separately for $75. Sullivan should recognize revenue for the two parts of the arrangement as follows: Defer the entire $500 and recognize over the support period. O Recognize the portion of the $500 attributable to the software program when the customer pays cash to buy the package; defer the portion attributable to technical support and recognize over the support period. Recognize the entire $500 when the customer pays cash to buy the package. Recognize the entire $500 upon conclusion of the support period.
G
Yankee Corp. agrees to provide Albany Company 24 months of coaching services. The contract sets the price at $4,000 per month, which is the normal stand-alone price that Yankee charges. After 16 months, Yankee and Albany agree to modify the contract. Yankee reduces the fee for the 8 remaining months to $3,800 per month, and Albany agrees to a 24-month extension at a cost of $3,600 per month. At the time that the contract is modified, Yankee is charging other customers $3,750 per month for the coaching service. If Yankee determines that the additional services are distinct from the goods and services transferred in the original contract, how would it account for the modification? Yankee would then recognize revenue of
JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2017, Just - Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of $10,000 per year. The restaurant chain pays the total contract fee on January 2, 2017. JustKitchens's stand-alone selling price is also $10,000 per year. After 2 years, the restaurant asks to modify the contract. On January 2, 2019, the companies agree to reduce the fee for the third year to $9,000 in exchange for extending the contract for 2 additional years at a fee of $11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service and deducts $1,000 for the adjustment to the original contract. The $11,000 fee for the additional years is the same as Just Kitchens's stand-alone price.…
Armel Gamboa Jonas licenses customer relationship software to Malen Cezar Hedges Inc. for 3 years. In addition to providing the software, Armel Gamboa Jonas promises to perform consulting services over the life of the license to maintain operability within Malen Cezar Hedges’ computer system. The total transaction price is P200,000. Based on stand-alone values, Armel Gamboa Jonas estimates the consulting services have a value of P75,000 and the software license has a value of P125,000. Upon installation of the software on July 1, 20x5, Malen Cezar Hedges pay P100,000; the contract balance is due on December 31, 20x5. Required: Identify whether the performance obligation and the revenue in 20x5, assuming The performance obligation are interdependent, and The performance obligations are not interdependent