Performance obligation: Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. To discuss: The basis of contract’s transaction price allocated to its performance obligation.

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Answer 1

Question

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

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Headland Company pays its office employee payroll weekly. Below is a partial list of employees and their payroll data for August. Because August is their vacation period, vacation pay is also listed. Earnings to Weekly Vacation Pay to Be Employee July 31 Pay Received in August Mark Hamill $5,180 $280 Karen Robbins 4,480 230 $460 Brent Kirk 3,680 190 380 Alec Guinness 8,380 330 Ken Sprouse 8,980 410 820 Assume that the federal income tax withheld is 10% of wages. Union dues withheld are 2% of wages. Vacations are taken the second and third weeks of August by Robbins, Kirk, and Sprouse. The state unemployment tax rate is 2.5% and the federal is 0.8%, both on a $7,000 maximum. The FICA rate is 7.65% on employee and employer on a maximum of $142,800 per employee. In addition, a 1.45% rate is charged both employer and employee for an employee's wages in excess of $142,800. Make the journal entries necessary for each of the four August payrolls. The entries for the payroll and for the…

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Answer 2

Question

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Expert Solution & Answer

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Answer 3

Question

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Expert Solution & Answer

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Answer 4

Question

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Expert Solution & Answer

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Answer 5

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Answer 6

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Answer 7

Chapter 5, Problem 5.4E

Requirement – 1

To determine

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Answer 8

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Answer 9

Requirement – 2

To determine

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

Answer 10

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Answer 11

Requirement – 3

To determine

To discuss: The circumstances for viewed the option as performance obligation.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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Performance obligation: Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract. To discuss: The basis of contract’s transaction price allocated to its performance obligation.

Solution Summary: The author explains that performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

Performance obligation:

Performance obligation is the promise made by the seller to supply the goods and service to the customer on or before the contract.

To discuss: The basis of contract’s transaction price allocated to its performance obligation.

To discuss: The indicators that promised goods or service is separately identifiable from other goods and services promised in the contract.

To discuss: The circumstances for viewed the option as performance obligation.

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Chapter 5 Solutions