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  3. on march 1, 2016, gold examiner receives $157,000

On March 1, 2016, Gold Examiner receives $157,000 from a local bank and promises to...

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Accounting

On March 1, 2016, Gold Examiner receives $157,000 from a local bank and promises to deliver 100 units of certified 1-oz. gold bars on a future date. The contract states that ownership passes to the bank when Gold Examiner delivers the products to Brinks, a third-party carrier. In addition, Gold Examiner has agreed to provide a replacement shipment at no additional cost if the product is lost in transit. The stand-alone price of a gold bar is $1,482 per unit, and Gold Examiner estimates the stand-alone price of the replacement insurance service to be $78 per unit. Brinks picked up the gold bars from Gold Examiner on March 30, and delivery to the bank occurred on April 1.

Determine the number of performance obligations:

I determined it was 2.

Record the following journal entries:

1. Record the receipt of cash by Gold Examiner.

2. Record any necessary entry when Brink's has picked up the gold bars from Gold Examiner.

3. Record any necessary entry upon delivery of the gold bars to the bank.

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