Il- Existence of a Contract- Revenue On May 10, 20x5, Marc Co, enters into a contract to deliver a product to Josh Inc. on June 15 20x5 Josh agrees to pay the full contract price of P4,000 on July 15, 20x5. The cost of the goods is P2.600. Marc delivers the products to Josh on June 15, 20x5, and receives payment on July 15 205. Required: Prepare the journal entries for Marc related to this contract on: 1. May 10, 20x5 2. June 15, 20x5 3. July 15, 20x5 II - Single Performance Obligation - Point in Time vs. Over Time Anton Video Tech sells the Play Station Portable (PSP) game-box, a gaming console. A PSP game-box is only a gaming module and includes no other goods or services. When should Anton recognize revenue for the following sale of 200 PSP games-boxes to Robcom Computers? • December 20, 20x6: Robcom Computers orders 200 games-boxes at a price of P7.600 each. promising payment within thirty (30) days after delivery. January 1, 20x7: Anton delivers 200 PSP game-boxes to Robcom Computers, and title to the PSP game-boxes transfers to Robcom Computers. • January 25, 20x7: Anton receives P1,520,000 from Robcom. Required: 1. Prepare the journal entryfies) on December 20, 20x7. 2. Prepare the journal entrylies) on January 1, 20x7. 3. Prepare the journal entry(ies) on January 25, 20x7. 4. Determine the amount of revenue from sales on December 20, 20x7. 5. Determine the amount of revenue from sales on January 1, 20x8. 6. Determine the amount of revenue from sales on January 25, 20x8.
Il- Existence of a Contract- Revenue On May 10, 20x5, Marc Co, enters into a contract to deliver a product to Josh Inc. on June 15 20x5 Josh agrees to pay the full contract price of P4,000 on July 15, 20x5. The cost of the goods is P2.600. Marc delivers the products to Josh on June 15, 20x5, and receives payment on July 15 205. Required: Prepare the journal entries for Marc related to this contract on: 1. May 10, 20x5 2. June 15, 20x5 3. July 15, 20x5 II - Single Performance Obligation - Point in Time vs. Over Time Anton Video Tech sells the Play Station Portable (PSP) game-box, a gaming console. A PSP game-box is only a gaming module and includes no other goods or services. When should Anton recognize revenue for the following sale of 200 PSP games-boxes to Robcom Computers? • December 20, 20x6: Robcom Computers orders 200 games-boxes at a price of P7.600 each. promising payment within thirty (30) days after delivery. January 1, 20x7: Anton delivers 200 PSP game-boxes to Robcom Computers, and title to the PSP game-boxes transfers to Robcom Computers. • January 25, 20x7: Anton receives P1,520,000 from Robcom. Required: 1. Prepare the journal entryfies) on December 20, 20x7. 2. Prepare the journal entrylies) on January 1, 20x7. 3. Prepare the journal entry(ies) on January 25, 20x7. 4. Determine the amount of revenue from sales on December 20, 20x7. 5. Determine the amount of revenue from sales on January 1, 20x8. 6. Determine the amount of revenue from sales on January 25, 20x8.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Il- Existence of a Contract - Revenue Recognition
On May 10, 20x5, Marc Co, enters into a contract to deliver a product to Josh Inc. on June 15
2015 Josh agrees to pay the full contract price of P4,000 on July 15, 20x5. The cost of the goode
is P2.600. Marc delivers the products to Josh on June 15, 20x5, and receives payment on July 15
2045.
Required: Prepare the journal entries for Marc related to this contract on:
1. May 10, 20x5
2. June 15, 20x5
3. July 15, 20x5
II - Single Performance Obligation - Point in Time vs. Over Time
Anton Video Tech sells the Play Station Portable (PSP) game-box, a gaming console. A PSP
game-box is only a gaming module and includes no other goods or services. When should
Anton recognize revenue for the following sale of 200 PSP games-boxes to Robcom Computers?
• December 20, 20x6: Robcom Computers orders 200 games-boxes at a price of P7.600 each,
promising payment within thirty (30) days after delivery.
• January 1, 20x7: Anton delivers 200 PSP game-boxes to Robcom Computers, and title to the
PSP game-boxes transfers to Robcom Computers.
• January 25, 20x7: Anton receives P1,520,000 from Robcom.
Required:
1. Prepare the journal entryfies) on December 20, 20x7.
2. Prepare the journal entry(ies) on January 1, 20x7.
3. Prepare the journal entry(ies) on January 25, 20x7.
4. Determine the'amount of revenue from sales on December 20, 20x7.
5. Determine the amount of revenue from sales on January 1, 20x8.
6. Determine the amount of revenue from sales on January 25, 20x8.
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