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1. What amount of the total transaction price should be allocated to the tax preparation?

2. What amount of total transaction price should be allocated to the consulting services?

3. Record the journal entry required at the date of the contract. What is the impact on the liability section of the balance sheet. For an increase simply input the number. For a decrease input the number with a minus sign before it such as -100. If there is no impact input a zero (0).

4. What is the amount of total revenue that should be recognized in the current accounting period (12/31/x7)

5. What is the TOTAL balance in ALL deferred revenue accounts at the end of the current accounting period (12/31/X7)? Consider all deferred revenue accounts for any/all performance obligations.

Anderson Accounting Services LLC provides accounting and tax preparation and consulting services. Sometimes customers only wish to have financial statements and/or tax returns prepared. Sometimes customers bundle accounting and tax preparation with consulting services to be provided over a period of time. Sometimes customers only wish to have consulting services provided over a period of time. Because Anderson is a service firm there is no cost of goods sold associated with their services. Round all answers and do not worry about minor rounding differences. 1 12 Customer is Civic Corporation and they purchase one bundled package Date of contract 10/1/X7 Tax consulting begins 10/1/X7 Length of consulting services months Tax return preparation occurs over the period January through April of 20x8 Length of tax preparation months Price of tax preparation to be allocated over the return preparation period $ 8,000 stand alone price Price of consulting services to be allocated over consulting period $ 18,000 stand alone price Customers are charged a lesser amount as follows for both tax and consulting $ 24,800 Anderson Accounting Services LLC's current year end 12/31/X7 Customers pay at the contract date for BOTH the consulting services and the preparation services. 4

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