Neo Airconditioner Sdn Bhd primarily sells and installs air conditioner. As well as suppliers air conditioners, it also provide air conditioner repair and services to its customers. The business commonly sells the supply and installation, and maintenance and services support in a combined goods and services contract. The combined goods and services contract sells for $3,600, but if sold separately the supply and installation is sold for $2,500 and the maintenance and service support for $1,300 fir a period of 24 months. Required: If Neo Airconditioner sold a combined contract on 1 July 219, demonstrate how the transaction would be presented in the financial statements for the year ended 31 December 2019, using the 5 steps revenue recognition model.
Neo Airconditioner Sdn Bhd primarily sells and installs air conditioner. As well as suppliers air conditioners, it also provide air conditioner repair and services to its customers. The business commonly sells the supply and installation, and maintenance and services support in a combined goods and services contract. The combined goods and services contract sells for $3,600, but if sold separately the supply and installation is sold for $2,500 and the maintenance and service support for $1,300 fir a period of 24 months.
Required:
If Neo Airconditioner sold a combined contract on 1 July 219, demonstrate how the transaction would be presented in the financial statements for the year ended 31 December 2019, using the 5 steps revenue recognition model.
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