SlideShare a Scribd company logo
1 of 1
Download to read offline
On 1 January 203, Orchard Limited signed four separate sales contracts with four different
customers, details of which, determined at contract inception, are presented below: Note 1.
Orchard expects that customer A will pay within the required settlement period of 30 days and
will thus qualify for the settlement discount. Note 2. Customer B was offered a rebate, dependent
on certain conditions being met. This rebate is considered to be a price reduction. Orchard
expects that customer B will comply meet these conditions and thus that the rebate will be
granted. The appropriate discount rate, determined at contract inception, is 10%. Required: a)
With regard to the contract with customer A, calculate the transaction price, provide the journal/s
and briefly explain your answer. b) With regard to the contract with customer B, calculate the
transaction price, provide the journal/s and briefly explain your answer. c) With regard to the
contract with customer C, calculate the transaction price, provide the journal/s and briefly
explain your answer, assuming: i) The effect of financing is considered to be insignificant; ii)
The effect of financing is considered to be significant. 24 Chapter 4 GAAP: Graded Questions
Revenue from contracts with customers d) With regard to the contract with customer D, calculate
the transaction price, provide the journal/s and briefly explain your answer, assuming: i) The
effect of financing is considered to be insignificant; ii) The effect of financing is considered to be
significant. Ignore loss allowances.

More Related Content

Similar to On 1 January 20�3, Orchard Limited signed four separate sales contr.pdf

Utah Realtor's Seller Finance Addendum
Utah Realtor's Seller Finance AddendumUtah Realtor's Seller Finance Addendum
Utah Realtor's Seller Finance Addendum
Want More Leads
 
ICDS - IIIConstruction contract
ICDS - IIIConstruction contract ICDS - IIIConstruction contract
ICDS - IIIConstruction contract
Madhuri Devi
 
1.Isaac Inc. began operations in January 2013. For certain of it.docx
1.Isaac Inc. began operations in January 2013. For certain of it.docx1.Isaac Inc. began operations in January 2013. For certain of it.docx
1.Isaac Inc. began operations in January 2013. For certain of it.docx
jackiewalcutt
 
IFRS 15 - Presentation (notes).pdf for accounting
IFRS 15 - Presentation (notes).pdf for accountingIFRS 15 - Presentation (notes).pdf for accounting
IFRS 15 - Presentation (notes).pdf for accounting
DawoodZahid6
 
1. Uncertainty that the party on the other side of an agreement.docx
1. Uncertainty that the party on the other side of an agreement.docx1. Uncertainty that the party on the other side of an agreement.docx
1. Uncertainty that the party on the other side of an agreement.docx
TatianaMajor22
 
Working capital finance
Working capital financeWorking capital finance
Working capital finance
Gaurav Chobey
 
Working capital finance
Working capital financeWorking capital finance
Working capital finance
Gaurav Chobey
 

Similar to On 1 January 20�3, Orchard Limited signed four separate sales contr.pdf (20)

Accounting for Liabilities- complete.pdf
Accounting for Liabilities- complete.pdfAccounting for Liabilities- complete.pdf
Accounting for Liabilities- complete.pdf
 
Utah Realtor's Seller Finance Addendum
Utah Realtor's Seller Finance AddendumUtah Realtor's Seller Finance Addendum
Utah Realtor's Seller Finance Addendum
 
IFRS 15 - Presentation.docx
IFRS 15 - Presentation.docxIFRS 15 - Presentation.docx
IFRS 15 - Presentation.docx
 
IFRS 15 - Presentation.docx
IFRS 15 - Presentation.docxIFRS 15 - Presentation.docx
IFRS 15 - Presentation.docx
 
ICDS - IIIConstruction contract
ICDS - IIIConstruction contract ICDS - IIIConstruction contract
ICDS - IIIConstruction contract
 
Final-Slide-Reporting(3).pptx nmhgdfghjkl;
Final-Slide-Reporting(3).pptx nmhgdfghjkl;Final-Slide-Reporting(3).pptx nmhgdfghjkl;
Final-Slide-Reporting(3).pptx nmhgdfghjkl;
 
1.Isaac Inc. began operations in January 2013. For certain of it.docx
1.Isaac Inc. began operations in January 2013. For certain of it.docx1.Isaac Inc. began operations in January 2013. For certain of it.docx
1.Isaac Inc. began operations in January 2013. For certain of it.docx
 
English ic33 chapter 12 to 15 mock test
English ic33 chapter 12 to 15 mock testEnglish ic33 chapter 12 to 15 mock test
English ic33 chapter 12 to 15 mock test
 
Construction law update august 2015 quarter 2 a
Construction law update august 2015 quarter 2 aConstruction law update august 2015 quarter 2 a
Construction law update august 2015 quarter 2 a
 
Commercial and Construction Law Update Q2 2015
Commercial and Construction Law Update Q2 2015Commercial and Construction Law Update Q2 2015
Commercial and Construction Law Update Q2 2015
 
Commericial Management and Construction law update 2015 Q2
Commericial Management and Construction law update 2015 Q2Commericial Management and Construction law update 2015 Q2
Commericial Management and Construction law update 2015 Q2
 
Assignment - FIDIC Contract
Assignment - FIDIC ContractAssignment - FIDIC Contract
Assignment - FIDIC Contract
 
dgs&d
dgs&ddgs&d
dgs&d
 
IFRS 15 - Presentation (notes).pdf for accounting
IFRS 15 - Presentation (notes).pdf for accountingIFRS 15 - Presentation (notes).pdf for accounting
IFRS 15 - Presentation (notes).pdf for accounting
 
Don't drop the ball on Contract Requirements and Performance (for Public Insu...
Don't drop the ball on Contract Requirements and Performance (for Public Insu...Don't drop the ball on Contract Requirements and Performance (for Public Insu...
Don't drop the ball on Contract Requirements and Performance (for Public Insu...
 
Revenue from contracts with customers
Revenue from contracts with customersRevenue from contracts with customers
Revenue from contracts with customers
 
1. Uncertainty that the party on the other side of an agreement.docx
1. Uncertainty that the party on the other side of an agreement.docx1. Uncertainty that the party on the other side of an agreement.docx
1. Uncertainty that the party on the other side of an agreement.docx
 
ACCA P2 mcq2
ACCA P2 mcq2ACCA P2 mcq2
ACCA P2 mcq2
 
Working capital finance
Working capital financeWorking capital finance
Working capital finance
 
Working capital finance
Working capital financeWorking capital finance
Working capital finance
 

More from amcointernationaljam

On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
 On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
amcointernationaljam
 
On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
 On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
amcointernationaljam
 
On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
 On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
amcointernationaljam
 
office Green Employee Training Communication Plan- In Course 3 - P.pdf
 office Green Employee Training Communication Plan- In Course 3 - P.pdf office Green Employee Training Communication Plan- In Course 3 - P.pdf
office Green Employee Training Communication Plan- In Course 3 - P.pdf
amcointernationaljam
 
Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
 Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
amcointernationaljam
 

More from amcointernationaljam (20)

On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartw.pdf
 On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartw.pdf On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartw.pdf
On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartw.pdf
 
On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
 On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
On 10 January 20X2, Grey Dog Limited signed a contract to suppl.pdf
 
Olease report on all requested information below and submit to the Sc.pdf
 Olease report on all requested information below and submit to the Sc.pdf Olease report on all requested information below and submit to the Sc.pdf
Olease report on all requested information below and submit to the Sc.pdf
 
On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
 On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
On April 3, 2000 Judge Thomas Penfield Jackson issued his conclusions.pdf
 
oints] Given X has the following distribution with parameters and . .pdf
 oints] Given X has the following distribution with parameters  and . .pdf oints] Given X has the following distribution with parameters  and . .pdf
oints] Given X has the following distribution with parameters and . .pdf
 
On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
 On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
On April 19, 2011, system administrators at Sonys On April 22, Sony .pdf
 
office Green Employee Training Communication Plan- In Course 3 - P.pdf
 office Green Employee Training Communication Plan- In Course 3 - P.pdf office Green Employee Training Communication Plan- In Course 3 - P.pdf
office Green Employee Training Communication Plan- In Course 3 - P.pdf
 
Oick the icon to view the rating valoes table. Click the icon to vinw.pdf
 Oick the icon to view the rating valoes table. Click the icon to vinw.pdf Oick the icon to view the rating valoes table. Click the icon to vinw.pdf
Oick the icon to view the rating valoes table. Click the icon to vinw.pdf
 
On a nationwide test taken by high school students, the mean score wa.pdf
 On a nationwide test taken by high school students, the mean score wa.pdf On a nationwide test taken by high school students, the mean score wa.pdf
On a nationwide test taken by high school students, the mean score wa.pdf
 
Of the conditions and disorders that the United States recommends all.pdf
 Of the conditions and disorders that the United States recommends all.pdf Of the conditions and disorders that the United States recommends all.pdf
Of the conditions and disorders that the United States recommends all.pdf
 
Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
 Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
Nicholas Copernicus introduced to astronomy a new model of the heaven.pdf
 
Next TWO questions are related to the following sample data ane, a s.pdf
 Next TWO questions are related to the following sample data ane, a s.pdf Next TWO questions are related to the following sample data ane, a s.pdf
Next TWO questions are related to the following sample data ane, a s.pdf
 
Naturally occurring boron consists of 2 isotopes the 10�B (atomic mas.pdf
 Naturally occurring boron consists of 2 isotopes the 10�B (atomic mas.pdf Naturally occurring boron consists of 2 isotopes the 10�B (atomic mas.pdf
Naturally occurring boron consists of 2 isotopes the 10�B (atomic mas.pdf
 
New research on the tree of life has suggested a shift from the class.pdf
 New research on the tree of life has suggested a shift from the class.pdf New research on the tree of life has suggested a shift from the class.pdf
New research on the tree of life has suggested a shift from the class.pdf
 
Next TW0 questions are related to the following sample data lane, a .pdf
 Next TW0 questions are related to the following sample data lane, a .pdf Next TW0 questions are related to the following sample data lane, a .pdf
Next TW0 questions are related to the following sample data lane, a .pdf
 
Nematodes lack which trait that is present in almost all bilaterians.pdf
 Nematodes lack which trait that is present in almost all bilaterians.pdf Nematodes lack which trait that is present in almost all bilaterians.pdf
Nematodes lack which trait that is present in almost all bilaterians.pdf
 
Net income was $206,500 for the year. Throughout the year the company.pdf
 Net income was $206,500 for the year. Throughout the year the company.pdf Net income was $206,500 for the year. Throughout the year the company.pdf
Net income was $206,500 for the year. Throughout the year the company.pdf
 
Natural Climate Change - Be able to explain differences between weath.pdf
 Natural Climate Change - Be able to explain differences between weath.pdf Natural Climate Change - Be able to explain differences between weath.pdf
Natural Climate Change - Be able to explain differences between weath.pdf
 
Nanial ano 28 ic cinclo and hac the followinn inromo and ovnoncoc in .pdf
 Nanial ano 28 ic cinclo and hac the followinn inromo and ovnoncoc in .pdf Nanial ano 28 ic cinclo and hac the followinn inromo and ovnoncoc in .pdf
Nanial ano 28 ic cinclo and hac the followinn inromo and ovnoncoc in .pdf
 
Need help with all parts (4) X is a normal variable with expectati.pdf
 Need help with all parts  (4) X is a normal variable with expectati.pdf Need help with all parts  (4) X is a normal variable with expectati.pdf
Need help with all parts (4) X is a normal variable with expectati.pdf
 

Recently uploaded

Neurulation and the formation of the neural tube
Neurulation and the formation of the neural tubeNeurulation and the formation of the neural tube
Neurulation and the formation of the neural tube
SaadHumayun7
 
IATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdffIATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdff
17thcssbs2
 
ppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyesppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyes
ashishpaul799
 

Recently uploaded (20)

Neurulation and the formation of the neural tube
Neurulation and the formation of the neural tubeNeurulation and the formation of the neural tube
Neurulation and the formation of the neural tube
 
....................Muslim-Law notes.pdf
....................Muslim-Law notes.pdf....................Muslim-Law notes.pdf
....................Muslim-Law notes.pdf
 
Post Exam Fun(da) Intra UEM General Quiz 2024 - Prelims q&a.pdf
Post Exam Fun(da) Intra UEM General Quiz 2024 - Prelims q&a.pdfPost Exam Fun(da) Intra UEM General Quiz 2024 - Prelims q&a.pdf
Post Exam Fun(da) Intra UEM General Quiz 2024 - Prelims q&a.pdf
 
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptxREPRODUCTIVE TOXICITY  STUDIE OF MALE AND FEMALEpptx
REPRODUCTIVE TOXICITY STUDIE OF MALE AND FEMALEpptx
 
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
BỘ LUYỆN NGHE TIẾNG ANH 8 GLOBAL SUCCESS CẢ NĂM (GỒM 12 UNITS, MỖI UNIT GỒM 3...
 
[GDSC YCCE] Build with AI Online Presentation
[GDSC YCCE] Build with AI Online Presentation[GDSC YCCE] Build with AI Online Presentation
[GDSC YCCE] Build with AI Online Presentation
 
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
TỔNG HỢP HƠN 100 ĐỀ THI THỬ TỐT NGHIỆP THPT VẬT LÝ 2024 - TỪ CÁC TRƯỜNG, TRƯ...
 
Pragya Champions Chalice 2024 Prelims & Finals Q/A set, General Quiz
Pragya Champions Chalice 2024 Prelims & Finals Q/A set, General QuizPragya Champions Chalice 2024 Prelims & Finals Q/A set, General Quiz
Pragya Champions Chalice 2024 Prelims & Finals Q/A set, General Quiz
 
“O BEIJO” EM ARTE .
“O BEIJO” EM ARTE                       .“O BEIJO” EM ARTE                       .
“O BEIJO” EM ARTE .
 
Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).Dementia (Alzheimer & vasular dementia).
Dementia (Alzheimer & vasular dementia).
 
Mbaye_Astou.Education Civica_Human Rights.pptx
Mbaye_Astou.Education Civica_Human Rights.pptxMbaye_Astou.Education Civica_Human Rights.pptx
Mbaye_Astou.Education Civica_Human Rights.pptx
 
Essential Safety precautions during monsoon season
Essential Safety precautions during monsoon seasonEssential Safety precautions during monsoon season
Essential Safety precautions during monsoon season
 
size separation d pharm 1st year pharmaceutics
size separation d pharm 1st year pharmaceuticssize separation d pharm 1st year pharmaceutics
size separation d pharm 1st year pharmaceutics
 
IATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdffIATP How-to Foreign Travel May 2024.pdff
IATP How-to Foreign Travel May 2024.pdff
 
Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024Capitol Tech Univ Doctoral Presentation -May 2024
Capitol Tech Univ Doctoral Presentation -May 2024
 
Open Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPointOpen Educational Resources Primer PowerPoint
Open Educational Resources Primer PowerPoint
 
Operations Management - Book1.p - Dr. Abdulfatah A. Salem
Operations Management - Book1.p  - Dr. Abdulfatah A. SalemOperations Management - Book1.p  - Dr. Abdulfatah A. Salem
Operations Management - Book1.p - Dr. Abdulfatah A. Salem
 
MichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdfMichaelStarkes_UncutGemsProjectSummary.pdf
MichaelStarkes_UncutGemsProjectSummary.pdf
 
Morse OER Some Benefits and Challenges.pptx
Morse OER Some Benefits and Challenges.pptxMorse OER Some Benefits and Challenges.pptx
Morse OER Some Benefits and Challenges.pptx
 
ppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyesppt your views.ppt your views of your college in your eyes
ppt your views.ppt your views of your college in your eyes
 

On 1 January 20�3, Orchard Limited signed four separate sales contr.pdf

  • 1. On 1 January 203, Orchard Limited signed four separate sales contracts with four different customers, details of which, determined at contract inception, are presented below: Note 1. Orchard expects that customer A will pay within the required settlement period of 30 days and will thus qualify for the settlement discount. Note 2. Customer B was offered a rebate, dependent on certain conditions being met. This rebate is considered to be a price reduction. Orchard expects that customer B will comply meet these conditions and thus that the rebate will be granted. The appropriate discount rate, determined at contract inception, is 10%. Required: a) With regard to the contract with customer A, calculate the transaction price, provide the journal/s and briefly explain your answer. b) With regard to the contract with customer B, calculate the transaction price, provide the journal/s and briefly explain your answer. c) With regard to the contract with customer C, calculate the transaction price, provide the journal/s and briefly explain your answer, assuming: i) The effect of financing is considered to be insignificant; ii) The effect of financing is considered to be significant. 24 Chapter 4 GAAP: Graded Questions Revenue from contracts with customers d) With regard to the contract with customer D, calculate the transaction price, provide the journal/s and briefly explain your answer, assuming: i) The effect of financing is considered to be insignificant; ii) The effect of financing is considered to be significant. Ignore loss allowances.