Chapter 5 Homework.xlsx - E 52 Service revenue Ski West Inc...

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South-Western Federal Taxation 2020: Comprehensive
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Chapter 16 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
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E 5–2Service revenueOn November 6, 2018, Jake Lawson purchased a season pass for $450.Required:1. When should Ski West recognize revenue from the sale of its season passes?2. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.3. What will be included in the Ski West 2018 income statement and balance sheet related to the sale of the s1 Ski West should recgonize revenue from their season pass after each month.26-NovCash450Unearned Revenue45031-Dec Unearned Revenue90Revenue903 $ 90 in revenue 360 in unearned revenueE 5–3Allocating transaction priceRequired:How much revenue would be allocated to the TV, the remote, and the installation service?0.85 TV16150.1 Installation1900.05 universal remote951900Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31.Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,700, sells the remote separately for $100, and offers the installation service separately for $200. The entire package sells for $1,900.
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South-Western Federal Taxation 2020: Comprehensive
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Chapter 16 / Exercise 1
South-Western Federal Taxation 2020: Comprehensive
Maloney/Raabe/Young
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season pass to Jake Lawson?
E 5–5Required:1. How many performance obligations are in this contract?2. Prepare the journal entry Gold Examiner would record on March 1.3. Prepare the journal entry Gold Examiner would record on March 30.4. Prepare the journal entry Gold Examiner would record on April 1.ItemAmount Percent AllocationGold1440000.96141120Insurance60000.045880Total150000100%1470001-Mar Cash147000Unearned revenue141120Unearned rev Gold588031 Unearned rev gold141120Sales rev1411201-Apr Unearned rev insurance5880sales rev5880E 5–7Performance obligations; customer option for additional goods or services; prepaymentRequired:1. How much revenue should Manhattan Today recognize upon receipt of the $130 subscription price?2. How many performance obligations exist in this contract?3. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferredOn March 1, 2018, Gold Examiner receives $147,000 from a local bank and promises to deliver 100 units of certifion a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the productparty carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if th

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