On 1st July 2023, LizardCom Co provides a bundled-service package to E. Aardvark for $1200 upfront.The service package includes: Upfront advice Database access for a 1-year period If each service wassold separately to E. Aardvark the fees would be: Up-front advice $600 Database access $900 Using therelative fair value approach, the amount of revenue recognised by LizardCom in relation to the databaseaccess over the financial year ended 30th June 2024 is (rounded to the nearest whole dollar): Group ofanswer choices 600 720 900 800

Under the relative fair value method, the issuer makes separate estimates of the fair value of each…

Answered: On 1st July 2023, LizardCom Co provides…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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UniTel Co provides a bundled-service package to B. Mann for $4,200 upfront. The service package includes upfront advice, 'on-call' advice, and database access for a 1-year period. If each service was sold separately to B. Mann the fees would be: Up-front advice: $900 On-call advice: $1,800 Database access: $2,700 Using the relative fair value approach, what is the amount of revenue recognised in relation to the on-call advice is (rounded to the nearest whole dollar): O $700 O $1,400 $1,800 $2,100
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Company A provides a bundled service offering to Customer B. It charges Customer B $800,000 for initial connection to its network and two ongoing services - access to the network for 1 year and 'on-call troubleshooting' advice for that year. Customer B pays the $800,000 upfront, on 1 July 2020. Company A determines that, if it were to charge a separate fee for each service if sold separately, the fee would be: Connection fee Access fee Troubleshooting Paragraph $400,000 Lato (Recomm... v $500,000 The end of Company A's reporting period is 30 June 2021. Required Prepare the journal entries to record this transaction in accordance with AASB 15 for 1 July 2020 and the year ended 30 June 2021, assuming Company A applies the relative fair value approach. (Show all workings). $400,000 BI U A/ 19px (... ✓ EQ DC X M
On August 31, 2022, Firewall Co. licensed its $9,600 application that will protect a customer's computer system from any cyber-attacks for a period of one year. Firewall will need to update this application every month for to fully protect the customers' computer system. How many performance obligation(s) does Firewall have? Also identify the amount of license revenue that Firewall should recognize in 2022 if it has a calendar year end. One performance obligation, and $9,600 license revenue should be recognized in 20X1. Two performance obligation, and $9,600 license revenue should be recognized in 20X1. One performance obligation, and $3,200 license revenue should be recognized in 20X1. Two performance obligation, and $3,200 license revenue should be recognized in 20X1.
8, please read the qestion and answer b
On March 1, 2023, Ivanhoe Company enters into a contract to transfer a product to Kingbird Inc. on July 31, 2023. Kingbird agrees to pay the full price of $14,500 in advance on April 15, 2023. Ivanhoe delivers the product on July 31, 2023. The cost of the product is $8,100. What journal entries are required in 2023? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record delivery of goods) (To record cost of goods sold) Debit Credit
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TPPG Ltd is a telecommunications provider. On 1 January 2024, the company entered into acontract to sell a smart phone and to provide two-years’ data service to a customer for $22 amonth. The stand-alone selling price of the phone and the data service is $120 and $20respectively.The customer will obtain delivery of the phone on the same day that he signed the contract,while the data service will be billed to the customer at the end of every month. The customerwill pay the bill in the following month.Required:(a) Briefly explain when revenue can be recognised according to the core principles in IFRS15 – Revenue from Contracts with Customers. (4 marks)(b) Identify the respective performance obligations in this contract. (4 marks)(c) Compute the revenue that should be recognised for the year ended 31 December 2024.Show all your workings clearly and round off answers to the nearest cent, whereapplicable.(10 marks)(d) Based on your answers in (c) above, prepare the necessary journal entries…
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Assume Avaya contracted to provide a customer with Internet infrastructure for $2,200,000. The project began in 2024 and was completed in 2025. Data relating to the contract are summarized below: Costs incurred during the year Estimated costs to complete as of 12/31 Billings during the year Cash collections during the year Complete this question by entering your answers in the tabs below. Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming Avaya recognizes revenue over time according to percentage of completion. 2. Compute the amount of revenue and gross profit or loss to be recognized in 2024 and 2025, assuming this project does not qualify for revenue recognition over time. 3. Prepare a partial balance sheet to show how the information related to this contract would be presented at the end of 2024, assuming Avaya recognizes revenue over time according to percentage of completion. 4. Prepare a partial balance sheet to show…
Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software packages sells for $150 and contains pre-programmed tutorials on basic accounting concepts. Another product sells for $3,000 and contains Smith & Sons’ archive of accounting standards and articles, which Smith & Sons updates on a weekly basis and downloads to archive users for the two years following purchase of the product. If a customer purchases both software packages on June 1, 2021, how much revenue should Smith & Sons recognize for the year?
On May 1, 2021,Varga Tech Services signed a $6,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period fromMay 1, 2021, to April 30, 2022, with Shaffer paying the entire $6,000 on May 1, 2021. How much revenue should Varga recognize in 2021?

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