Assignment #1: Revenue Recognition

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Assignment #1: Revenue Recognition
I. Allocate Transaction Price, Upfront Fees Tablet Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.
1. Tablet Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2017, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash.
2. Tablet Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $600. Tablet Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $150. Tablet Tailors signed 200 contracts for Tablet Bundle B on July 1, 2017, receiving a total of $120,000 in cash.
Instructions: (a) Prepare any journal entries to record the revenue arrangement for Tablet Bundle A on January 2, 2017, and December 31, 2017. (b)Prepare any journal entries to record the revenue arrangement for Tablet Bundle B on July 1,2017, and December31, 2017. (c) Repeat the requirements for part (a), assuming that Tablet Tailors has no reliable data with which to estimate the stand- alone selling price for the Internet service.
II. Five-Step Revenue Process
Revenue is recognized based on a five-step process that is applied to a company’s revenue arrangements.
Instructions: (a) Briefly describe the five-step process. (b) Explain the importance of contracts when analyzing revenue arrangements. (c) How are fair value measurement concepts applied in implementation of the five-step process? (d) How does the five-step process reflect application of the definitions of assets and liabilities?
ADDITONAL INSTRUCTIONS:
• Complete Part I using Excel. o Include descriptions for the journal entries. o Show your work. For numbers that require calculations, show your work either as formulas within the cells or separately below the journal entries. • Complete Part II using Word. o Any references used must be cited in-text in APA format with the full reference listed on a separate reference page. • You must upload all your files at one time (you cannot upload one file and then come back later and upload another.)

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Assignment #1: Revenue Recognition

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

GET A 40% DISCOUNT ON YOU FIRST ORDER

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Assignment #1: Revenue Recognition
I. Allocate Transaction Price, Upfront Fees Tablet Tailors sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.
1. Tablet Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3year Internet connection service contract is $500. The standalone selling price of the tablet is $250 (the cost to Tablet Tailors is $175). Tablet Tailors sells the Internet access service independently for an upfront payment of $300. On January 2, 2017, Tablet Tailors signed 100 contracts, receiving a total of $50,000 in cash.
2. Tablet Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $600. Tablet Tailors provides the 3-year tablet service plan as a separate product with a standalone selling price of $150. Tablet Tailors signed 200 contracts for Tablet Bundle B on July 1, 2017, receiving a total of $120,000 in cash.
Instructions: (a) Prepare any journal entries to record the revenue arrangement for Tablet Bundle A on January 2, 2017, and December 31, 2017. (b)Prepare any journal entries to record the revenue arrangement for Tablet Bundle B on July 1,2017, and December31, 2017. (c) Repeat the requirements for part (a), assuming that Tablet Tailors has no reliable data with which to estimate the stand- alone selling price for the Internet service.
II. Five-Step Revenue Process
Revenue is recognized based on a five-step process that is applied to a company’s revenue arrangements.
Instructions: (a) Briefly describe the five-step process. (b) Explain the importance of contracts when analyzing revenue arrangements. (c) How are fair value measurement concepts applied in implementation of the five-step process? (d) How does the five-step process reflect application of the definitions of assets and liabilities?
ADDITONAL INSTRUCTIONS:
• Complete Part I using Excel. o Include descriptions for the journal entries. o Show your work. For numbers that require calculations, show your work either as formulas within the cells or separately below the journal entries. • Complete Part II using Word. o Any references used must be cited in-text in APA format with the full reference listed on a separate reference page. • You must upload all your files at one time (you cannot upload one file and then come back later and upload another.)

Our academic experts are ready and waiting to assist with any writing project you may have. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs.

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ORDER NOW DISCOUNT CODE >>>> WELCOME40

 

 

Posted in Uncategorized