Seller and buyer execute a contract on January 2, 2023 for t…

Seller and buyer execute a contract on January 2, 2023 for the sale of 100 red widgets at an agreed-upon price of $1.00 per widget. Between January 2, 2023 and March 30, 40 red widgets are delivered leaving 60 red widgets yet to be delivered. On April 1, 2023, the agreement was modified to add 40 blue widgets at an agreed upon sales price of $1.50 each ($1.00 is the stand alone sales price of blue widgets). So, at close of business April 1, 2023, Seller is obligated under the modified agreement to deliver 60 more red widgets plus 40 blue widgets. How much revenue should be recognized in April 2023 if Seller delivers 10 red widgets and 10 blue widgets (total of 20 widgets) during that month?

On December 31, 2023, Green Valley Farm entered into a contr…

On December 31, 2023, Green Valley Farm entered into a contract to buy a $150,000 harvester from John Deere. The contract required Green Valley Farm to pay $150,000 in advance on that date. The harvester (cost of $110,000) was delivered to Green Valley Farm on January 31, 2024. How much revenue from this transaction will be reported on John Deere’s income statement for the fiscal year ended December 31, 2023? If none enter $0.