Multiple Performance Obligations? Here's How to Price Them Right
Today, we will continue studying the fundamentals of revenue recognition. We will look into a demonstration problem to gain a better understanding of how to determine the transaction price and how to record transactions with multiple performance obligations. ⬇️⬇️⬇️
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Timeline:
00:00 Introduction
00:38 Demonstration Problem - Determining Transaction Price
02:36 Performance Obligations Overview
03:33 Revenue Recognition Principle Overview
04:02 ASC 606 - Provides Guidelines About Revenue Recognition
05:00 When Revenue Should Be Recognized?
05:32 Apply Revenue Recognition Principle to Demonstration Problem - Price Calculation
07:28 Prepare Journal Entries - 1- To Record Sale of Equipment
10:27 Prepare Journal Entries - 2 - To Record Payment Received
10:56 Prepare Journal Entries - 3 - To Record Sales and Service Revenue
11:36 Prepare Journal Entries - 4 - To Record Cost of Goods Sold
12:08 Recording a Compound Entry Alternative
12:16 Prepare Journal Entries - 5 - To Record Maintenance Revenue
13:34 Recommended Videos and Playlists
The textbook used in this video: Intermediate Accounting, Kieso ● Weygandt ● Warfield, 18th edition. Chapter 17.
Additional resources:
https://www.amsa-online.com/free-reso...
American Modern School of Accounting is a nonprofit online vocational school that offers several programs to help adult learners start or advance their careers in bookkeeping and accounting.
We offer the following programs:
• Certificate in Computerized Accounting with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks
• Certificate in Computerized Bookkeeping with QuickBooks (Budget Plan)
For more information, visit our website: https://www.amsa-online.com/
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