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givi [52]
3 years ago
15

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Ger

akos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

The question requirement relates to the amount of revenue to be recognized in year 2019 and 2020 respectively.

2019 Revenue is $66,667

2020 Revenue $13,333

Explanation:

The total price of $80,000 is split into $60,000 which is standalone  price of the software and the balance relates of $20,000($80,000-$60,000) relates to technical support.

It is important to note that the selling price of software of $60,000 is due for recognition as revenue, while technical support fee of $20000 should be recognized on a progress basis,for each month the technical support has been rendered.

2019 Revenue

Software                                                 $60,000

Technical support($20000*2/6)             $6,667

Total                                                         $66,667

2020 Revenue

($80,000-$66,667)                                  $13,333

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Explanation:

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3 years ago
Walman Corp. manufactures products X, Y, and Z from a joint production process. Joint costs are allocated to products on the bas
Maurinko [17]

Answer:

$340,000

Explanation:

The computation of Product X’s sales value at the split-off point is shown below:

= Total sales value - Product Y sales value at the split-off point - Product Z sales value at the split-off point  

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8 0
3 years ago
You are going to sell your house. You are determining what the price should be. To help you, you have collected information of h
viktelen [127]

ANSWER: The data collected is NOT an appropriate representation that can be used to determine how much you should sell your house.

EXPLANATION: A house is evaluated by the contents which were used to build it. For instance a house built with a bricks can not be of the same value with a wood or block house, even though they have the same pattern.

Because the data does not show the values of the contents of the house, which are: walls, pattern, designs, how many stirs, roof, and interior quality, it cannot be used to determine the price you should sell your house.

Also, looking at the data gotten, you can understand that this houses has been sold according to the contents that made up the building, because some old builder were sold more costlier than some new buildings, and some building with a much bigger square feet were sold in a lower price when compared to some buildings with a smaller square feet

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3 years ago
A class of stock that provides no preference rights to shareholders Answer 2 The number of shares currently held by stockholders
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Answer: Please refer to Explanation.

Explanation:

A class of stock that provides no preference rights to shareholders. COMMON STOCK.

The number of shares currently held by stockholders. OUTSTANDING SHARES.

The number of shares sold to stockholders. ISSUED SHARES.

The account used to record the difference when issue price exceeds par value of stock. PAID-IN CAPITAL IN EXCESS OF PAR.

The maximum number of shares a company can issue to shareholders. AUTHORIZED SHARES.

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A class of stock having first rights to dividends of a corporation. PREFERRED STOCK.

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Thank you guys for giving me all the answers i need. If you will need help with one of your word problems let me know.!
GenaCL600 [577]

Answer:

No problem

Explanation:

8 0
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