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. Variable consideration: Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events. Deferred revenues: Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned. Rules of Debit and Credit: Following rules are followed for debiting and crediting different accounts while they occur in business transactions: Debit , all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities. Credit , all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses. To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Dog

%24 Problem (1) Month 1 2 3. Monthly direct cost 1,100,000 1.500,000 2,700,000 2,300,000 1,900,000 Given: 1. Indirect cost = 100,000 EGP/month 2. Mark up value = 5% 3. Down payment = 20% 4. Retention Value - 10% due with the last invoice 5. Invoices are due the next time they are submitted Required: 1. Calculate monthly costs 2. Calculate invoices value 3. Calculate total project cost and price 4. Draw the cash flow diagram 5. Draw the net cash flow diagram 6. Calculate the profit, net profit, ROI, and financing value if the interest rate is 1% / month. 7. What do you suggest to decrease the financing value

222 Chapter5 PROBLEM 4: MULTIPLE CHOICE- COMPUTATIONAL Mr. Juan, an employee, has a pay rate of P125 per hour, with time and a half for hours worked in excess of 40 during a week. If Mr. Juan works 60 hours during a week and has weekly deductions for SSS at a rate of 6%, PhilHealth at a rate of 1.5%, Pag-IBIG at P25, and withholding tax of 15% on salary after deductions of the required contributions, how much is Mr. Juan's net pay for the week? 1. a. 5,876 b. b. 6,757 c. 6,858 d. d. 7,023 С. Th

Answer 2

Question

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Answer 6

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Answer 7

Chapter 6, Problem 6.5P

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.

Variable consideration:

Variable consideration refers to the uncertain transaction price that depends upon the outcome of future events.

Deferred revenues:

Collection of cash in advance to render service or to deliver goods in future is known as unearned revenues. These unearned revenues are considered as liabilities until they are earned. For the portion of rendered services or delivered goods, revenues would be recognized by way of passing an adjusting entry. Unearned revenue is also known as deferred revenues, because at the receiving of payment in advance, revenues are not recognized but deferred until they are earned.

Rules of Debit and Credit:

Following rules are followed for debiting and crediting different accounts while they occur in business transactions:

Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.

Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.

To prepare: The journal entry on January 31 to record the collection of cash and recognition of the first month’s revenue.

Answer 8

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Answer 9

Requirement – 2

To determine

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

Answer 10

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Answer 11

Requirement – 3

To determine

To prepare: The journal entry on June 30 to record payment of the penalty.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

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 rules of debiting and crediting different accounts while they occur in business transactions.

To prepare: The journal entry on June 30 to record receipt of the bonus, and assume total cost saving exceed target.

To prepare: The journal entry on June 30 to record payment of the penalty.

Want to see the full answer?

Chapter 6 Solutions