The revenue recognition The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed. Principal Principal is the legal owner of goods or service which is transferred to the customer for legal consideration. Agent Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered. To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

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Answer 1

Question

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

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Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required information Use the following information to answer questions. (Algo) [The following information applies to the questions displayed below.] Information on Kwon Manufacturing's activities for its first month of operations follows: a. Purchased $100,800 of raw materials on credit. b. Materials requisitions show the following materials used for the month. Job 201 Job 202 Total direct materials Indirect materials Total materials used $ 49,000 24,400 73,400 9,420 $ 82,820 c. Time tickets show the following labor used for the month. Print References Job 201 $ 40,000 Job 202 13,400 Total direct labor 53,400 25,000 $ 78,400 Indirect labor Total labor used d. Applied overhead to Job 201 and to Job 202 using a predetermined overhead rate of 80% of direct materials cost. e. Transferred Job 201 to Finished Goods Inventory. f. Sold Job 201 for $166,160 on credit. g. Incurred the following actual other…

quesrion 2

Anti-Pandemic Pharma Co. Ltd. reports the following information in its income statement: Sales = $5,250,000; Costs = $2, 173,000; Other expenses = $187,400; Depreciation expense = $79,000; Interest expense= $53,555; Taxes $76,000; Dividends $69,000. $136,700 worth of new shares were also issued during the year and long-term debt worth $65,300 was redeemed. a) Compute the cash flow from assets b) Compute the net change in working capital (325 marks)

Answer 2

Question

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

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Answer 3

Question

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

Answer 6

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Answer 7

Chapter 6, Problem 6.10DMP

Requirement – 2

To determine

The revenue recognition

The revenue recognition principle refers to the revenue that should be recognized in the time period, when the performance obligation (sales or services) of the company is completed.

Principal

Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Agent

Agent is a facilitator for transferring goods and service from seller to buyers. Agent receives commission from principal for the service rendered.

To indicate: The revenue recognition note in Company E’s and Company P’s financial statement.

Answer 8

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

Answer 9

Requirement – 3

To determine

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 6 - What are the five key steps a company follows to...Ch. 6 - What indicators suggest that a performance...Ch. 6 - What criteria determine whether a company can...Ch. 6 - We recognize service revenue either at one point...Ch. 6 - What characteristics make a good or service a...Ch. 6 - Prob. 6.6Q Ch. 6 - What must a contract include for the contract to...Ch. 6 - How might the definition of probable affect...Ch. 6 - When a contract includes an option to buy...Ch. 6 - Prob. 6.10Q

Solution Summary: The author explains the revenue recognition principle in Company E and Company P's financial statement. Principal is the legal owner of goods or service which is transferred to the customer for legal consideration.

Concept explainers

To indicate: Whether the amount shown in the income statement is “net” or “gross”.

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Chapter 6 Solutions