Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for. Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company. (a) To describe: To describe the revenue recognition principle.

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General Accounting

Answer 1

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Florida Kitchens produces high-end cooking ranges. The costs to manufacture and market the ranges at the company’s volume of 3,000 units per quarter are shown in the following table: Unit manufacturing costs Variable costs $ 1,440 Fixed overhead 720 Total unit manufacturing costs $ 2,160 Unit nonmanufacturing costs Variable 360 Fixed 840 Total unit nonmanufacturing costs 1,200 Total unit costs $ 3,360 The company has the capacity to produce 3,000 units per quarter and always operates at full capacity. The ranges sell for $4,000 per unit. Required: a. Florida Kitchens receives a proposal from an outside contractor, Burns Electric, who will manufacture 1,200 of the 3,000 ranges per quarter and ship them directly to Florida’s customers as orders are received from the sales office at Florida. Florida would provide the materials for the ranges, but Burns would assemble, box, and ship the ranges. The variable manufacturing costs would be…

Answer 2

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Answer 3

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

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Answer 4

Question

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Expert Solution & Answer

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Answer 5

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 6

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

Answer 7

Chapter 18, Problem 2CA

To determine

Revenue recognition: GAAP (Generally accepted accounting principle) states that under specific conditions only the revenue is recognized and accounted for.

Performance obligation: A promise to transfer goods or services is said to be the performance obligation. It exists if a customer gets benefits from goods or services with the available resources and is determined by the company.

(a)

To describe: To describe the revenue recognition principle.

Answer 8

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

Answer 9

To determine

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

Answer 10

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 11

To determine

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Answer 12

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Ch. 18 - Prob. 1Q Ch. 18 - Prob. 2Q Ch. 18 - Prob. 3Q Ch. 18 - Prob. 4Q Ch. 18 - Prob. 5Q Ch. 18 - Prob. 6Q Ch. 18 - Prob. 7Q Ch. 18 - Prob. 8Q Ch. 18 - Prob. 9Q Ch. 18 - Prob. 10Q

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(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Chapter 18 Solutions

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(b) To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.

(c) To explain: To explain whether collectibility a consideration in the recognition of revenue.

Chapter 18 Solutions

(b)

To discuss: To discuss the relation of revenue recognition principles to the definition of assets and liabilities and also the importance of control.