Lux Hotels Inc. has signed a service outsourcing contract with Deluxe Rooms Inc. for 3 million, which was received in cash at contract inception. Under the agreement. Deluxe Rooms is obligated to clean and prepare over 5,000 hotel rooms managed by Lux Hotel on a daily basis from August 1, 2019 to July 31, 2020. When should Lux Hotels recognizes revenue? a. No transaction c. Point in time b. No revenue d. Over time The amount of sales revenue on August 1, 2019? a. Zero c. P1,500,000 b. P1,250,000 d. P3,000,000 The sales revenue on December 31, 2019 amounted to: a. Zero c. P1,500,000 b. P1,250,000 d. P3,000,000
Lux Hotels Inc. has signed a service outsourcing contract with Deluxe Rooms Inc. for 3 million, which was received in cash at contract inception. Under the agreement. Deluxe Rooms is obligated to clean and prepare over 5,000 hotel rooms managed by Lux Hotel on a daily basis from August 1, 2019 to July 31, 2020. When should Lux Hotels recognizes revenue? a. No transaction c. Point in time b. No revenue d. Over time The amount of sales revenue on August 1, 2019? a. Zero c. P1,500,000 b. P1,250,000 d. P3,000,000 The sales revenue on December 31, 2019 amounted to: a. Zero c. P1,500,000 b. P1,250,000 d. P3,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lux Hotels Inc. has signed a service outsourcing contract with Deluxe Rooms Inc. for 3 million, which was
received in cash at contract inception. Under the agreement. Deluxe Rooms is obligated to clean and prepare over 5,000 hotel rooms managed by Lux Hotel on a daily basis from August 1, 2019 to July 31, 2020.
When should Lux Hotels recognizes revenue?
a. No transaction c. Point in time
b. No revenue d. Over time
The amount of sales revenue on August 1, 2019?
a. Zero c. P1,500,000
b. P1,250,000 d. P3,000,000
The sales revenue on December 31, 2019 amounted to:
a. Zero c. P1,500,000
b. P1,250,000 d. P3,000,000
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