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E18-2B (Revenue Recognition?Point of Sale)Sheena Company sells goods that cost $400,000 to Richie Company for $530,000 on January 2, 2014. The sales price includes an installation fee, which is valued at $50,000. The fair value of the goods is $480,000. T

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E18-2B (Revenue Recognition?Point of Sale)Sheena Company sells goods that cost $400,000 to Richie Company for $530,000 on January 2, 2014. The sales price includes an installation fee, which is valued at $50,000. The fair value of the goods is $480,000. The installation is expected to take 6 months.;Instructions;(a) Prepare the journal entry (if any) to record the sale on January 2, 2014.;(b) Sheena prepares an income statement for the first quarter of 2014, ending on March 31, 2014. How much revenue should Sheena recognize related to its sale to Richie?

 

Paper#75373 | Written in 18-Jul-2015

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