On January 27, 2018, Lock Company Entered into a Three-Year

question 46

Essay

On January 27, 2018, Lock Company entered into a three-year agreement with Strong Enterprises to supply 2,000 ounces of platinum for $200 an ounce. During 2018, Lock mined and purified the 2,000 ounces of platinum at a cost of $200,000. The platinum was shipped on January 14, 2019 and arrived on January 15, 2019, at Strong's warehouse. What is Lock's revenue and gross profit recognized during 2018, consistent with the criteria for revenue recognition and the matching concept? Explain.

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Definitions:

Thyroxin

Thyroxin, also known as thyroxine or T4, is a hormone produced by the thyroid gland, essential for regulating metabolism and growth in the body.

G Protein-Linked Receptors

A large family of cell surface receptors that, when activated by a ligand, initiate a signal transduction pathway involving G proteins.

Transmembrane Proteins

Proteins that span the entire lipid bilayer of a cell membrane, involved in various functions such as signal transduction and transportation of substances.

Intracellular Signal

A form of communication within cells where signals are transmitted to elicit a specific response.