PT XYZ is engaged in heavy equipment business which was established in 2005. Since its inception, PT XYZ has served retail purchases. In 2022, PT XYZ will develop its business by contracting or contract mining services for Cooperation. Purchases of retail transactions are carried out with the mechanism of Cash Delivery and Credit Payment Agreement Contracts with certain customers.Business development for mining service contracts carried out for 2 years PT. Continental with the following contracts:Maintenance & Repair Contract: Serving repair services, spare parts availability, routine monitoring/control for heavy equipment which is carried out on a scheduled basis based on the type & number of heavy equipment.Maintenance & Repair contract with a period of 2 years has an estimated value of 50 billion Rupiah with a total of 10 units of heavy equipment. The contract has been signed by each of the company's president directors.PT XYZ's obligations to customers are as follows:1. PT XYZ carries out activities such as heavy equipment inspections according to schedule. 2. PT XYZ performs periodic maintenance 3. PT XYZ performs heavy equipment repairs. 4. PT XYZ provides (stock) spare parts needs according to the planned needs for the next 3 months.PT Kontinental's obligations are as follows:1. Prepare a place for offices, warehouses and supporting facilities within the mine site2. Prepare a place to live for employees of PT XYZ.3. Provide food and drink for employees on site.Table of billing values based on fixed contracts for Maintenance & Repair contracts for April – September 2021.Schedule of Rates Monthly overhead payment Amount 1 . April $ 50,000 2 . May $ 51,000 3 . June $ 51,000 4 . August $ 50,500 5 . September $ 50,000 Schedule of RatesMonthly overhead payment Amount 1. April $ 27,500 2 . May $ 28,050 3 . June $ 28,050 4 . August $ 27,7755. September $ 27,500 In addition to fixed values, there are also rates per hour for billing based on heavy equipment operations with Hour Meter size every month. The hourly rate per month for April-September 2021 is $250 and Average Machine works 17 hours per day for 1 month. The fixed cost recorded in this activity is 50% of the rate per hour.Billing to customers is done within 3 working days after the period of work is done. Documents attached are as follows: a. Worksheet & Photo mechanic Activity. b. Recapitulation of heavy equipment operational hour meters. c. invoices.Payment terms for maintenance & repair contracts are 45 days after the invoice is received by the customer.If customers need services in repairing heavy equipment and need spare parts for heavy equipment outside the contract, they can follow the company's provisions with the cash payment method & credit agreement contract. Question:a. Identify the 5 stages in sales recognitionb. Prepare the required journals for the above transactions. PT XYZ is engaged in heavy equipment business which was established in 2005. Since its inception, PT XYZ has served retailpurchases. In 2022, PT XYZ will develop its business by contracting or contract mining services for Cooperation. Purchases of retailtransactions are carried out with the mechanism of Cash Delivery and Credit Payment Agreement Contracts with certaincustomers.Business development for mining service contracts carried out for 2 years PT. Continental with the following contracts:Maintenance & Repair Contract: Serving repair services, spare parts availability, routine monitoring/control for heavy equipmentwhich is carried out on a scheduled basis based on the type & number of heavy equipment.Maintenance & Repair contract with a period of 2 years has an estimated value of 50 billion Rupiah with a total of 10 units ofheavy equipment. The contract has been signed by each of the company's president directors.PT XYZ's obligations to customers are as follows:1. PT XYZ carries out activities such as heavy equipment inspections according to schedule.2. PT XYZ performs periodic maintenance3. PT XYZ performs heavy equipment repairs.4. PT XYZ provides (stock) spare parts needs according to the planned needs for the next 3 months.PT Kontinental's obligations are as follows:1. Prepare a place for offices, warehouses and supporting facilities within the mine site2. Prepare a place to live for employees of PT XYZ.3. Provide food and drink for employees on site.Table of billing values based on fixed contracts for Maintenance & Repair contracts for April - September 2021.Schedule of RatesSchedule of RatesMonthly overhead paymentMonthly overhead paymentNoMonthAmountNoMonthAmount1April50,0001| April$ 27,5002May51,0002May$ 28,050$ 28,050$ 27,775June51,0003June4August50,5004August5|September $50,0005 September $ 27,500In addition to fixed values, there are also rates per hour for billing based on heavy equipment operations with Hour Meter sizeevery month. The hourly rate per month for April-September 2021 is $250 and Average Machine works 17 hours per day for 1month. The fixed cost recorded in this activity is 50% of the rate per hour.Billing to customers is done within 3 working days after the period of work is done. Documents attached are as follows:a. Worksheet & Photo mechanic Activity.b. Recapitulation of heavy equipment operational hour meters.c. invoices.Payment terms for maintenance & repair contracts are 45 days after the invoice is received by the customer.If customers need services in repairing heavy equipment and need spare parts for heavy equipment outside the contract, theycan follow the company's provisions with the cash payment method & credit agreement contract.Question:a. Identify the 5 stages in sales recognitionb. Prepare the required journals for the above transactions.

Question

PT XYZ is engaged in heavy equipment business which was established in 2005. Since its inception, PT XYZ has served retail purchases. In 2022, PT XYZ will develop its business by contracting or contract mining services for Cooperation. Purchases of retail transactions are carried out with the mechanism of Cash Delivery and Credit Payment Agreement Contracts with certain customers.Business development for mining service contracts carried out for 2 years PT. Continental with the following contracts:Maintenance & Repair Contract: Serving repair services, spare parts availability, routine monitoring/control for heavy equipment which is carried out on a scheduled basis based on the type & number of heavy equipment.Maintenance & Repair contract with a period of 2 years has an estimated value of 50 billion Rupiah with a total of 10 units of heavy equipment. The contract has been signed by each of the company's president directors.PT XYZ's obligations to customers are as follows:1. PT XYZ carries out activities such as heavy equipment inspections according to schedule. 2. PT XYZ performs periodic maintenance 3. PT XYZ performs heavy equipment repairs. 4. PT XYZ provides (stock) spare parts needs according to the planned needs for the next 3 months.PT Kontinental's obligations are as follows:1. Prepare a place for offices, warehouses and supporting facilities within the mine site2. Prepare a place to live for employees of PT XYZ.3. Provide food and drink for employees on site.Table of billing values based on fixed contracts for Maintenance & Repair contracts for April – September 2021.Schedule of Rates		Monthly overhead payment 			Amount 1	. April	 $ 50,000 		2	. May	 $ 51,000 		3	. June	$ 51,000 		4	. August 	 $ 50,500 		 5	. September 	 $ 50,000 		Schedule of RatesMonthly overhead payment 			Amount 1. April	 $ 27,500 2	. May	 $ 28,050 3	. June	 $ 28,050 4	. August 	 $ 27,7755. 	September 	 $ 27,500 In addition to fixed values, there are also rates per hour for billing based on heavy equipment operations with Hour Meter size every month. The hourly rate per month for April-September 2021 is $250 and Average Machine works 17 hours per day for 1 month. The fixed cost recorded in this activity is 50% of the rate per hour.Billing to customers is done within 3 working days after the period of work is done. Documents attached are as follows: a. Worksheet & Photo mechanic Activity. b. Recapitulation of heavy equipment operational hour meters. c. invoices.Payment terms for maintenance & repair contracts are 45 days after the invoice is received by the customer.If customers need services in repairing heavy equipment and need spare parts for heavy equipment outside the contract, they can follow the company's provisions with the cash payment method & credit agreement contract. Question:a. Identify the 5 stages in sales recognitionb. Prepare the required journals for the above transactions. PT XYZ is engaged in heavy equipment business which was established in 2005. Since its inception, PT XYZ has served retailpurchases. In 2022, PT XYZ will develop its business by contracting or contract mining services for Cooperation. Purchases of retailtransactions are carried out with the mechanism of Cash Delivery and Credit Payment Agreement Contracts with certaincustomers.Business development for mining service contracts carried out for 2 years PT. Continental with the following contracts:Maintenance & Repair Contract: Serving repair services, spare parts availability, routine monitoring/control for heavy equipmentwhich is carried out on a scheduled basis based on the type & number of heavy equipment.Maintenance & Repair contract with a period of 2 years has an estimated value of 50 billion Rupiah with a total of 10 units ofheavy equipment. The contract has been signed by each of the company's president directors.PT XYZ's obligations to customers are as follows:1. PT XYZ carries out activities such as heavy equipment inspections according to schedule.2. PT XYZ performs periodic maintenance3. PT XYZ performs heavy equipment repairs.4. PT XYZ provides (stock) spare parts needs according to the planned needs for the next 3 months.PT Kontinental's obligations are as follows:1. Prepare a place for offices, warehouses and supporting facilities within the mine site2. Prepare a place to live for employees of PT XYZ.3. Provide food and drink for employees on site.Table of billing values based on fixed contracts for Maintenance & Repair contracts for April - September 2021.Schedule of RatesSchedule of RatesMonthly overhead paymentMonthly overhead paymentNoMonthAmountNoMonthAmount1April50,0001| April$ 27,5002May51,0002May$ 28,050$ 28,050$ 27,775June51,0003June4August50,5004August5|September $50,0005 September $ 27,500In addition to fixed values, there are also rates per hour for billing based on heavy equipment operations with Hour Meter sizeevery month. The hourly rate per month for April-September 2021 is $250 and Average Machine works 17 hours per day for 1month. The fixed cost recorded in this activity is 50% of the rate per hour.Billing to customers is done within 3 working days after the period of work is done. Documents attached are as follows:a. Worksheet & Photo mechanic Activity.b. Recapitulation of heavy equipment operational hour meters.c. invoices.Payment terms for maintenance & repair contracts are 45 days after the invoice is received by the customer.If customers need services in repairing heavy equipment and need spare parts for heavy equipment outside the contract, theycan follow the company's provisions with the cash payment method & credit agreement contract.Question:a. Identify the 5 stages in sales recognitionb. Prepare the required journals for the above transactions.

Accepted Answer

The first stage in sales recognition is identifying the contract that exists with the customer.

Is…