ZARA University contract:Contract Price:UnitsPriceContract PriceStep 1:Step 2:Step 3:Delivery dateJanuaryFebruaryMarchLater905655592,775Step 4:Contract existsOnly 1 performance obligationDetermine the transaction price - variable considerationBonus Consideration Probability4%3%2%0%It is 55% likely that the revenue will be reversed, so it is constrained.Transaction Price (constrained)Transaction Price per scooterEstimated Bonus per scooter616,486610,558604,631592,775610,558674.6519.6545%40%10%5%100%Only 1 performance obligation, so no allocation277,419244,22360,46329,639611,744 Please list all of the journal entries for 2022 the ZARAUNIVERSITY Contract. Your company name is PP. See belowinformation:On December 1, PP signed a contract with ZARA University toprovide them with 905 scooters, at a price of $655 each. ZARAUniversity chose not to purchase the additional maintenanceservice. Because PP had a great sales year, they did not have anyscooters in stock on December 1.ZARA University offered a bonus plan for early delivery.They will pay a 4% bonus if all scooters are delivered by the endof January, 3% if all scooters are delivered by the end of February,and 2% if all scooters are delivered by the end of March.It believes that it is 45% likely that it can deliver the remainingscooters in January, 40% likely that it will deliver them inFebruary, 10% likely that it will deliver them in March, and 5%likely it will deliver them in April.PP delivered and was paid for 195 scooters during the month ofDecember.Hint: Consider using the "Estimated Bonus" account.The analysis of the first four steps in the revenue recognitionprocess are below:

Rules for EntriesPersonal Account: Related to Person or Firm.Receiver will be debited and Giver will…

ZARA University contract: Contract Price: Units Price Contract Price Step 1: Step 2: Step 3: Delivery date January February March Later 905 655 592,775 Contract exists Only 1 performance obligation Determine the transaction price - variable consideration Bonus Consideration Probability 4% 3% 2% 0% 616,486 610,558 604,631 592,775 It is 55% likely that the revenue will be reversed, so it is constrained. Transaction Price (constrained) Transaction Price per scooter Estimated Bonus per scooter Step 4: 610,558 674.65 19.65 45% 40% 10% 5% 100% Only 1 performance obligation, so no allocation 277,41 244,22 60,46 29.63 611,74

ZARA University contract: Contract Price: Units Price Contract Price Step 1: Step 2: Step 3: Delivery date January February March Later 905 655 592,775 Contract exists Only 1 performance obligation Determine the transaction price - variable consideration Bonus Consideration Probability 4% 3% 2% 0% 616,486 610,558 604,631 592,775 It is 55% likely that the revenue will be reversed, so it is constrained. Transaction Price (constrained) Transaction Price per scooter Estimated Bonus per scooter Step 4: 610,558 674.65 19.65 45% 40% 10% 5% 100% Only 1 performance obligation, so no allocation 277,41 244,22 60,46 29.63 611,74

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On April 1, 2024, Washtenaw Corporation realizes that one of its main suppliers is having difficulty meeting delivery schedules, which is hurting Washtenaw's business. The supplier explains that it has a temporary lack of funds that is slowing its production cycle. Washtenaw agrees to lend $480,000 to its supplier using a 12-month, 12% note. Required: Record the following transactions for Washtenaw Corporation: 1. The loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2. The adjusting entry for accrued interest on December 31, 2024. 3. Cash collection of the note and interest on April 1, 2025. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the loan of $480,000 and acceptance of the note receivable on April 1, 2024. 2 Note: Enter debits before credits. Date April 01, 2024 Record entry Credit > View general journal
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