![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching. VolleyElite charges customers $500 per year for access to its facilities and programs. In addition, VolleyElite charges each customer a $100 registration fee. The fee is not refundable and must be paid at the initiation of the contract. Should the registration fee be considered a separate performance obligation from the yearly dues?
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Chapter 17 Solutions
Intermediate Accounting: Reporting And Analysis
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Financial Accounting: Tools for Business Decision Making, 8th Edition
Financial Accounting, Student Value Edition (4th Edition)
Introduction To Managerial Accounting
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
- John signs a 1-year contract with Fitness The First Gym. The terms of the contract are that John is required to pay a non-refundable initiation fee of P12,000 and an annual membership fee of P1,000 per month. Fitness The First Gym determines that its customers, on average, renew their annual membership two times before terminating their membership. How much is the annual revenue?arrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. Allocate the transaction price to the performance obligations: the allocated transaction price to each performance obligations? answer is P11,520 network service and P2,880 for Apple I-Phone Handset provide solutionarrow_forwardFor a fixed amount a month, an entity visits the customers' premises and performs pest control services. If customers experience problems between regularly scheduled visits, the entity makes service calls at no additional charge. Instead of paying monthly, customers may pay a certain annual fee in advance. For a customer who pays the annual fee in advance, the entity should recognize the related revenue: A. When the cash is collected. B. At the end of the year. C. At the end of the contract year after all of the services have been performed. D. Evenly over the contract year as the services are performed. Which of the following is a current liability? A. Preferred dividend in arrears B. Dividend payable in the form of additional share capital C. Cash dividend payable to preferred shareholders D. All of these When the word accrued is used in connection with a current liability, it means: A. an expense has been incurred, but is unpaid at the end of the reporting period. B. an expense has…arrow_forward
- SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 31,20x7, the amount of accounts receivable to be recorded A. 1,200 B. Nonearrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On December 31, 20x7, the total revenue amounted to: Answer is 960. Provide solutionarrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. 3.Determine the transaction price - the total transaction price? answer 14,400 provide the solution.arrow_forward
- SmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. 9. On March 31, 20x7, the revenue from network services amounted to: Answer is 960. Provide solutionarrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On December 31, 20x7, the total revenue amounted to: a. 960 b. Nonearrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1,20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo's monthly plan for 12 months and in retum Kim Dorothy receives a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 31,20x7, the amount of accounts receivable to be recorded Answer is 1,200. Provide the solutionarrow_forward
- Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial fee in exchange for (a) the exclusive right to operate the only TechStop in a particular area for a five-year period, (b) the equipment necessary to distribute and repair AntonTech products, and (c) training services to be provided over a two-year period. Similar equipment and training can be purchased elsewhere. 1. How many performance obligations exist in this contract? a. 0 b. 1 c. 2 d. 3 2. AntonTech should recognize revenue for the right to operate a Techshop? a. No transaction b. No revenue c. Point in time d. Over time 3. AntonTech should recognize revenue for the equipment? a. No transaction b. No revenue c. Point in Time d. Over Timearrow_forwardCompany A provides a bundled service offering to Customer B. It charges Customer B $800,000 for initial connection to its network and two ongoing services - access to the network for 1 year and 'on-call troubleshooting' advice for that year. Customer B pays the $800,000 upfront, on 1 July 2020. Company A determines that, if it were to charge a separate fee for each service if sold separately, the fee would be: Connection fee Access fee Troubleshooting Paragraph $400,000 Lato (Recomm... v $500,000 The end of Company A's reporting period is 30 June 2021. Required Prepare the journal entries to record this transaction in accordance with AASB 15 for 1 July 2020 and the year ended 30 June 2021, assuming Company A applies the relative fair value approach. (Show all workings). $400,000 BI U A/ 19px (... ✓ EQ DC X Marrow_forwardSmaGlo, Inc., a telecommunications operator, entered into a contract with Kim Dorothy on March 1, 20x7. In line with the contract, Kim Dorothy subscribes for SmaGlo’s monthly plan for 12 months andin return Kim Dorothy received a free Apple I-Phone handset from SmaGlo. Kim Dorothy will pay a monthly fee of P1,200. Kim Dorothy gets the handset immediately after contract signature. SmaGlo sells the same handsets for P2,400 and the same monthly plans for P800 per month without handset. On March 1, 20x7, the revenue from sales of goods amounted to:a. Noneb. P2,800arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)