ACCT group project

Material：

https://petermargaritis.com/how-the-new-five-step-revenue-recognition-model-impacts-your-organization/

C3-1: On January 1, 2019, LeMoyne Construction Company signs a contract to build an office building for Franklin Corporation for $10 million. Franklin remits $1 million to LeMoyne upon signing the contract, $5 million when the foundation and all outside components are complete, and $4 million upon full completion. Franklin must pay LeMoyne an additional $100,000 if all construction is completed by July 31, 2020.

Required:

Apply the 5-step revenue recognition model to determine when revenue should be recognized by LeMoyne.

· Intro- Description of the company, industry, and market in the case to understand why the issues occurred. Description of natures of the issues in the case.- team member 1

· Summarize and identify each step to the specific case

1. Identify the contract(s) team member 2 2. Identify the separate performance obligations team member 3 3. Determine the transaction price team member 4 4. Allocate the transaction price to the separate performance obligations team member 5 5. Recognize revenue when the entity satisfies a performance obligation team member 6

· 2 Additional Questions- team member7