A On January 1. 2020. Machinery Corp. enters into a contract with a customer for the sale of a machine and related one year maintenance services for a total contract price of P2000.000. Machinery Corp. regularly sells these items separately. If they were to be purchased separately, their stand-alone selling prices are as follows: P1.800.000 for the machines and P600.000 for the one-year maintenance services Machinery Corp transfers the machine, and collects the total contract price on February 1, 2020 The maintenance services start on that date. Required Analyze the five steps of model of revenue recognition

Q: , Shyam Construction Co. entered into a contract with a customer for the construction of a building.…

A: Under percentage completion method , revenue is recognized as the % of completion. The % of…

Q: into a contract with Benton Corp. to sell it $25,000 of goods. Aiken will deliver the goods on…

A: The journal entry is prepared to keep the record of day to day transactions of the business.

Q: Peterson, Inc. purchased a machine under a deferred payment contract on December 31, 20x1. Under the…

A: Purchase price of machine = Annual payment x Present value factore (8, 8%)

Q: A. On January 1, 2020, Machinery Corp. enters into a contraat with a oustomer for the sale of a…

A: Revenue refers to the amount which is earned by the seller or provider sells goods or provides the…

Q: On November 1, 2021, Crane Farm entered into a contract to buy a $138000 harvester from John Deere.…

A: Journal entries are the the primary reporting of the transactions in the books of accounts.

Q: unland Company sells goods that cost $300,000 to Marigold Company for $400,000 on January 2, 2020.…

A:

Q: On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 4,100 units of Comfort Office…

A: We can find two performance obligations in this contract, they are as follows: key board customer…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On October 2, 2020, a company enters into a contract to transfer a product to the customer. It is…

A: COGS is starting inventory and purchases throughout the amount, minus your ending inventory. You may…

Q: Careful Company sells goods that cost P600,000 to a customer for P800,000 on December 20, 2021. The…

A: Revenue will be recognise as and when performance obligation satisfied. It can be recognise at the…

Q: On January 1, 2018, an entity enters into a contract to transfer Products C and D to a customer in…

A: Contract liability: When the entity obtains a certain amount of  consideration for the goods or…

Q: On October 10, 2017, Executor Co. entered into a contractwith Belisle Inc. to transfer Executor’s…

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Q: On August 1, 2019, Aiken Corp. enters into a contract with Benton Corp. to sell it $25,000 of goods.…

A: Contracts are promises that the law will enforce. Contracts arise when a duty comes into existence,…

Q: Beautiful Company sold a set of washing machine and a dryer for a total contract price of P100,000…

A: Revenue will be recognise as and when performance obligation satisfied. It can be recognise at the…

Q: a) Using the above data, compute the gross profit to be recognized for each of the three years,…

A:

Q: On May 1, 2020, Tamarisk Inc. entered into a contract to deliver one of its specialty mowers to…

A: Preparation of Journal Entries Here the situation is a contract agreement between Kickapoo…

Q: Jillian Inc. manufactures and installs customized equipment. On January 1, 2021, Jillian entered…

A: ANSWER     IFRS 15 establishes the principles that an entity applies when reporting information…

Q: On November 1, 2021 a  customer enters into a contract with MyWatch, Inc. to purchase an eWatch plus…

A: The Accrual basis accounting states that revenue should be recognized as and when the service or…

Q: On May 10, 2020, Marigold Co. enters into a contract to deliver a product to Greig Inc. on June 15,…

A: The primary reporting of transactions in the books of accounts can be made by recording journal…

Q: On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to…

A: Journal entry record the financial transactions. In case money is received in advance, it is…

Q: On May 1, 2020, Mount Company enters into a contract to transfer a product to Eric Company on…

A: Date Account Titles and Explanation Debit Credit June 15, 2020 Cash $25,000…

Q: Cass Company enters into a contract with Dearborn Inc. to sell it $50,000 of goods with delivery on…

A: 1) Meaning of Transaction Price  Transaction Price is the Amount of consideration that company…

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Q: On January 1, Nathan Company enters into a contract to provide custom-made equipment to Cushing…

A: Solution 1 The above question is related to revenue recognized concept. In above case the business…

Q: On January 1, 2020, Gordon Co. enters into a contract to sell a customer a wiring base and shelving…

A: a.

Q: On May 1, 2020, Nash Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…

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Q: On January 1, SaLow Company enters into a contract to provide custom-made equipment to ByHi…

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Q: Brainy Company started the construction of a building for a customer at a fixed contract price of…

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Q: On January 1, 2020, ABC enters into a contract with a customer to transfer a license for a fixed fee…

A:

Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…

A: Particulars 2019 Cumulative costs incurred 800,000 Remaining Estimated costs to be completed…

Q: On May 1, 2020, Richardson Inc. entered into a contract to deliver one of its specialty mowers to…

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Q: On December 31,2019, Innovation Company sold a machinery costing P5,200,000 whicl a carrying amount…

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Q: On January 1, 2018, DMCI Company started the construction of a building at a fixed contract price of…

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Q: Receipts from contracts are credited to unearned service contract revenue.

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Q: Arrow Co. entered Into a contract with a customer for $500,000. The contract is for the dellvery of…

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Q: On May 1, 2020, Teal Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo…

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Q: ABC Co. sells equipment service contracts that cover a two-year period. The sales price of each…

A: Introduction:- Calculation of total sales value as follows:- Total sales value = No. of contracts…

Q: to buy a $155000 harvester from John Deere. The contract required Sheridan Farm to pay $155000 in…

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Q: that requires the entity to replace defective parts and Sony Company sells stereos under a 2-year…

A:

Q: On May 10, 2020, Sunland Co. enters into a contract to deliver a product to Splish Brothers Inc. on…

A: Solution:- Preparation of Journal entries for Sunland company as follows:-

Q: On January 31, O’Malley Company contracted to have two products built by Taylor Manufacturing for a…

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Q: On December 31, 2019, Entity A enters into a contract with Customer B to transfer a license for a…

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A: As per the standards relating to Revenue from Contracts with customers, transaction price should be…

Q: On May 10, 2020, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15,…

A: Journal Entry:   It is a systematic record of a financial transaction of a company recorded in…

Q: he second contract year. Receipts from service contracts for the 2 years ended December 31, 2021,…

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Q: On January 1, 20x1, Marc Company enters into a contract with a customer to transfer a license.…

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Q: On May 1, 2021, Meta Computer Inc, enters into a contract to sell 6.300 units of Comfort Office…

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