Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Larkspur sells $5,700 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Larkspur for TeleExpress lines over the three months is $2,100. Indicate how much income Larkspur should recognize in January, February, March, and April under IFRS. (Do not leave any answer field blank. Enter O for amounts.) Month Income January 24 February 24 March 2$ April

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications company, TeleExpress, for the
actual use of its telephone lines related to the prepaid telephone cards. Assume that Larkspur sells $5,700 of prepaid cards in
January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The
total payment by Larkspur for TeleExpress lines over the three months is $2,100.
Indicate how much income Larkspur should recognize in January, February, March, and April under IFRS. (Do not leave any answer
field blank. Enter O for amounts.)
Month
Income
January
$
February
$
March
2$
April
2$
Transcribed Image Text:Larkspur Inc. sells prepaid telephone cards to customers. Larkspur then pays the telecommunications company, TeleExpress, for the actual use of its telephone lines related to the prepaid telephone cards. Assume that Larkspur sells $5,700 of prepaid cards in January 2020. It then pays TeleExpress based on usage, which turns out to be 50% in February, 30% in March, and 20% in April. The total payment by Larkspur for TeleExpress lines over the three months is $2,100. Indicate how much income Larkspur should recognize in January, February, March, and April under IFRS. (Do not leave any answer field blank. Enter O for amounts.) Month Income January $ February $ March 2$ April 2$
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