ASC 606 Analysis

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Sample — Horizon Logistics

Sample

Draft completeRecognition · Over time

Customer: Horizon Logistics
Performance obligations: 3
Contract: DEMO-HORIZON
Transaction price: $153,000.00

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Journal Entries

These journal entries are generated deterministically from the approved revenue and contract-balance workpapers. They are read-only and are not posted or saved.

Journal Entries: 18
Periods: 12
Total Debits: $459,000.00
Total Credits: $459,000.00
Reconciliation: ✓ Reconciled

2027-07-01

Unconditional Right

Right to consideration becomes unconditional (billing-1)

Account	Debit	Credit
Accounts Receivable — Billed	$75,000.00	—
Contract Liability	—	$75,000.00
Total	$75,000.00	$75,000.00

2027-07-31

Revenue Recognition

Revenue recognized for 2027-07

Account	Debit	Credit
Contract Liability	$22,295.08	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.21
Revenue — Implementation Training · 7/10/2027–7/11/2027	—	$10,200.00
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$22,295.08	$22,295.08

2027-07-31

Cash Collection

Cash collected (cash-1)

Account	Debit	Credit
Cash	$75,000.00	—
Accounts Receivable — Billed	—	$75,000.00
Total	$75,000.00	$75,000.00

2027-08-31

Revenue Recognition

Revenue recognized for 2027-08

Account	Debit	Credit
Contract Liability	$12,095.09	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.22
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.09	$12,095.09

2027-09-30

Revenue Recognition

Revenue recognized for 2027-09

Account	Debit	Credit
Contract Liability	$11,704.91	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,032.78
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,672.13
Total	$11,704.91	$11,704.91

2027-10-31

Revenue Recognition

Revenue recognized for 2027-10

Account	Debit	Credit
Contract Liability	$12,095.09	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.22
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.09	$12,095.09

2027-11-30

Revenue Recognition

Revenue recognized for 2027-11

Account	Debit	Credit
Contract Liability	$11,704.91	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,032.78
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,672.13
Total	$11,704.91	$11,704.91

2027-12-31

Revenue Recognition

Revenue recognized for 2027-12

Account	Debit	Credit
Contract Liability	$5,104.92	—
Contract Asset	$6,990.17	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.22
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.09	$12,095.09

2028-01-01

Unconditional Right

Right to consideration becomes unconditional (billing-2)

Account	Debit	Credit
Accounts Receivable — Billed	$39,000.00	—
Contract Asset	—	$6,990.17
Contract Liability	—	$32,009.83
Total	$39,000.00	$39,000.00

2028-01-31

Revenue Recognition

Revenue recognized for 2028-01

Account	Debit	Credit
Contract Liability	$12,095.08	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.21
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.08	$12,095.08

2028-02-29

Revenue Recognition

Revenue recognized for 2028-02

Account	Debit	Credit
Contract Liability	$11,314.75	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$9,698.36
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,616.39
Total	$11,314.75	$11,314.75

2028-03-15

Cash Collection

Cash collected (cash-2)

Account	Debit	Credit
Cash	$39,000.00	—
Accounts Receivable — Billed	—	$39,000.00
Total	$39,000.00	$39,000.00

2028-03-31

Revenue Recognition

Revenue recognized for 2028-03

Account	Debit	Credit
Contract Liability	$8,600.00	—
Contract Asset	$3,495.08	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.21
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.08	$12,095.08

2028-04-01

Unconditional Right

Right to consideration becomes unconditional (billing-3)

Account	Debit	Credit
Accounts Receivable — Billed	$39,000.00	—
Contract Asset	—	$3,495.08
Contract Liability	—	$35,504.92
Total	$39,000.00	$39,000.00

2028-04-30

Revenue Recognition

Revenue recognized for 2028-04

Account	Debit	Credit
Contract Liability	$11,704.92	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,032.79
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,672.13
Total	$11,704.92	$11,704.92

2028-04-30

Cash Collection

Cash collected (cash-3)

Account	Debit	Credit
Cash	$39,000.00	—
Accounts Receivable — Billed	—	$39,000.00
Total	$39,000.00	$39,000.00

2028-05-31

Revenue Recognition

Revenue recognized for 2028-05

Account	Debit	Credit
Contract Liability	$12,095.08	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,367.21
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,727.87
Total	$12,095.08	$12,095.08

2028-06-30

Revenue Recognition

Revenue recognized for 2028-06

Account	Debit	Credit
Contract Liability	$11,704.92	—
Revenue — Hosted SaaS Access · 7/1/2027–6/30/2028	—	$10,032.79
Revenue — Premium Support · 7/1/2027–6/30/2028	—	$1,672.13
Total	$11,704.92	$11,704.92