Required:1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)Answer is not complete.NoDateGeneral JournalDebitCredit1July 15Accounts receivable10,000Service revenue10,000July 31Accounts receivable15,000Bonus receivable2,500 XService revenue17,500 O3August 05Cash25,000Accounts receivable25,0004August 05Service revenue2,500Bonus receivable2,5002. Rocky Guide Service provides guided 1-5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to leadvarious tours that Wilderness sells. Rocky receives $1,000 per tour day, and shortly after the end of each month Rocky learns whetherit will receive a $100 bonus per tour day it guided during the previous month if its service during that month received an averageevaluation of "excellent" by Wilderness customers. The $1,000 per day and any bonus due are paid in one lump payment shortly afterthe end of each month.• On July 1, based on prior experience, Rocky estimated there is a 30% chance it will earn the bonus for July tours. It guided a total of10 days from July 1-July 15.• On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimateto an 80% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16-July 31.• On August 5 Rocky learned it did not receive an average evaluation of “excellent" for its July tours, so it would not receive anybonus for July, and received all payment due for the July tours.Rocky bases estimates of variable consideration on the expected value it expects to receive.Required:1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "Nojournal entry required" in the first account field.)

Required 1 to 3) No. Date General Journal Debit Credit 1 July 15 Accounts receivable…

1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Date General Journal Debit Credit Accounts receivable Service revenue 1 July 15 10,000 10,000 Accounts receivable Bonus receivable July 31 15,000 2,500 8 Service revenue 17,500 O Cash Accounts receivable August 05 25,000 25,000 4 August 05 Service revenue 2,500 O Bonus receivable 2,500 2.

1. to 3. Prepare the journal entries to record the transactions above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Answer is not complete. No Date General Journal Debit Credit Accounts receivable Service revenue 1 July 15 10,000 10,000 Accounts receivable Bonus receivable July 31 15,000 2,500 8 Service revenue 17,500 O Cash Accounts receivable August 05 25,000 25,000 4 August 05 Service revenue 2,500 O Bonus receivable 2,500 2.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 7RE: VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching....

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Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tourshires Rocky to lead various tours that Wilderness sells. Rocky receives $1,000 per tour day, and shortly after theend of each month Rocky learns whether it will receive a $100 bonus per tour day it guided during the previousmonth if its service during that month received an average evaluation of “excellent” by Wilderness customers. The$1,000 per day and any bonus due are paid in one lump payment shortly after the end of each month.∙ On July 1, based on prior experience, Rocky estimated there is a 30% chance it will earn the bonus for Julytours. It guided a total of 10 days from July 1–July 15.∙ On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month,Rocky revised its estimate to an 80% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31.∙ On August 5 Rocky learned it did not…
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,200 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $220 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,200 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15. On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31. On August 5 Rocky learned it did…
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,200 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $220 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,200 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15. On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31. On August 5 Rocky learned it did…
Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,500 per tour day, and shortly after the end of each month, Rocky learns whether it will receive a $150 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,500 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 30% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1 to July 15. On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 80% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16 to July 31. On August 5, Rocky…
Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,700 per tour day, and shortly after the end of each month, Rocky learns whether it will receive a $170 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,700 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 20% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1 to July 15. ● On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 70% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16 to July 31. . On August 5, Rocky…
Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,500 per tour day, and shortly after the end of each month, Rocky learns whether it will receive a $250 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,500 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1 to July 15. On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16 to July 31. On August 5, Rocky…
ky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead ous tours that Wilderness sells. Rocky receives $1,900 per tour day, and shortly after the end of each month Rocky learns whether ill receive a $190 bonus per tour day it guided during the previous month if its service during that month received an average aluation of "excellent" by Wilderness customers. The $1,900 per day and any bonus due are paid in one lump payment shortly after e end of each month. On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15. On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31. • On August 5 Rocky learned it did not receive an…
bok nt Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $2,100 per tour day, and shortly after the end of each month, Rocky learns whether it will receive a $210 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $2,100 per day and any bonus due are paid in one lump payment shortly after the end of each month. On July 1, based on prior experience, Rocky estimated there is a 30% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1 to July 15. ⚫ On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 80% chance it would earn the bonus for all July tours. Rocky also guided customers for 15 days from July 16 to July 31. . On August…
VolleyElite runs a volleyball program consisting of camps, tournaments, and specialized coaching. VolleyElite charges customers 500 per year for access to its facilities and programs. In addition, VolleyElite charges each customer a 100 registration fee. The fee is not refundable and must be paid at the initiation of the contract. Should the registration fee be considered a separate performance obligation from the yearly dues?
Campus Cellular provides cell phones and 1 year of cell serviceto students for an upfront, nonrefundable fee of $300 anda usage fee of $5 per month. Students may renew the servicefor each year they are on campus (on average, students renewtheir service one time). What amount of revenue shouldCampus Cellular recognize in the first year of the contract?
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Rookie Cookies wants to rent a new bakery space to operate their business at $10,000 a year for the next 5 years. The rent agreement specifies that a $4,000 security deposit needs to be paid by Rookie up-front. In year 4 of the rental agreement, a one-time machinery maintenance fee of $6,000 will need to be paid by Rookie. When the rental agreement expires, Rookie feels they cam sell the machinery they maintained during the rental agreement for $7,000. Assuming a 10% ra of return, what is the present value (or cost) of the bakery space rental decision? Present Value of a $1 Present Value of an Annuity of $1 Period 10% Period 10% 0.909 1 0.909 2 0.826 0.751 0.683 0.621 3 345 O-$50,355 O-$41,297 O-$41,661 O-$18,655 2 3 45 1.736 2.487 3.170 3.791