On January 2,2019,Boulder Pointe Air Conditioning and Heating Sold and Installed

question 29

Essay

On January 2,2019,Boulder Pointe Air Conditioning and Heating sold and installed an HVAC system to DeMille Co.for $2,750.The selling price is allocated as follows: (1)90% for the HVAC unit and (2)10% for an ongoing 4-year service contract for the HVAC unit.
A.Determine each of the following related to this sale:
1.Identify the contract between the company and the customer.
2.Identify the performance obligations of Boulder Pointe.
3.Determine the transaction price.
4.Allocate the transaction price to the performance obligations.
B.What amount of revenue should Boulder Pointe recognize for the year ended December 31,2019?

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Definitions:

Brain Trauma

An injury to the brain that can result from blows, bumps, jolts, or penetrations to the head, leading to temporary or permanent impairment of cognitive, physical, and psychosocial functions.

Motor Vehicle Accident

An incident involving a car, truck, motorcycle, or other motorized vehicle that results in damage or injury.

Combat Depression

Strategies, treatments, and activities aimed at fighting against or alleviating the symptoms of depression.

Immobilization

The restriction of movement, often through physical means or devices, to promote healing or prevent further injury.