On January 1, 2021, ABC Corporation, a music record label,licensed to a customer the original version of a classical hit.The customer, a consumer products company, has the rightto use the asset in all commercials, including television, radioand online advertisements for 3 years in the Philippines. Inexchange for providing the license. ABC receivesconsideration of P60.000 every quarter-end. The contractdoes not include any other goods or services to be providedby ABC. The contract is non-cancellable. The license istransferred to the customer on January 1, 2021. Theappropriate discount rate is 8%. What amount of franchiserevenue should be reported in 2021?

The revenue should be the cash to be received from the customer during the year and it should be…

On January 1, 2021, ABC Corporation, a music record labe licensed to a customer the original version of a classical hi The customer, a consumer products company, has the righ to use the asset in all commercials, including television, radi and online advertisements for 3 years in the Philippines. I exchange for providing the license. ABC receives

On January 1, 2021, ABC Corporation, a music record labe licensed to a customer the original version of a classical hi The customer, a consumer products company, has the righ to use the asset in all commercials, including television, radi and online advertisements for 3 years in the Philippines. I exchange for providing the license. ABC receives

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, 2022, Proton, Inc. purchased a patent giving it exclusive rights to manufacture a new type of synthetic clothing for P240,000. While the patent had a remaining legal life of 15 years at the time of purchase, Proton expects the useful life to be only eight more years. In addition, Proton purchased equipment related to production of the new clothing for P140,000. The equipment has a physical life of 10 years but Proton plans to use the equipment only over the patent's service life and then sell it for an estimated P20,000. Proton uses straight-line for all long-term assets. The amount charged to expense in 2022 related to the patent and equipment should be: O P40,000. P31,000. O P38,000. O P45,000.
Hi, Can you help with the attached questions, thanks kindly.
Denger
3. Paris paid Cherry $333,333 on 12/31/2020 for the exclusive right to market a particular product using the Cherry Co name and logo in promotional material. The franchise follows the rules of Going Concern. Paris also spent $600,000 on 12/31/2020 in developing a new manufacturing process. Its application for a patent is submitted. Paris believes it will be successful In January of 2021 Paris application for a patent was granted. Legal and registrations costs incurred were $ 210,000. The patent runs for 20 years. But the manufacturing process will only be useful to Paris for 10 years What is the impact on net income related to the $210,000 of costs for the patent?
Meyer & Smith is a full-service technology company. They provide equipment, installation services as well as training. Customers can purchase any product or service separately or as a bundled package. Sunland Corporation purchased computer equipment, installation and training for a total cost of $ 135405 on March 15, 2021. Estimated standalone fair values of the equipment, installation and training are $ 88500, $ 44400 and $ 26400 respectively. The journal entry to record the transaction on March 15, 2021 will include a O credit to Sales Revenue for $ 135405. O credit to Unearned Service Revenue of $ 22440. O debit to Unearned Service Revenue of $ 26400. O credit to Service Revenue of $ 44400.
Furtastic manufactures imitation fur garments. On June 1, 2024, Furtastic made a sale to Willett's Department Store under terms that require Willett to pay $220,000 to Furtastic on June 30, 2024. In a separate transaction on June 15, 2024, Furtastic purchased brand advertising services from Willett for $26,000. The fair value of those advertising services is $12,000. Furtastic expects that 3% of all sales will prove uncollectible. Required: 1. Prepare the journal entry to record Furtastic's sale on June 1, 2024. 2. Prepare the journal entry to record Furtastic's purchase of advertising services from Willett on June 15, 2024. Assume all of the advertising services are delivered on June 15, 2024. 3. Prepare the journal entry to record Furtastic's receipt of $220,000 from Willett on June 30, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet
A telecommunications operator (BarleyCo) enters into an indefeasible rights of use (IRU) contract with TomCo (the incumbent telecommunications operator) for a dark fibre route between two cities. The agreement is for a term of 20 years, which is the expected service life of the cable. The arrangement specifies exclusive use of a distinct fibre within the TomCo fibre cable, and BarleyCo is responsible for the installation of transmission equipment in TomCo’s buildings in order to light the fibre. TomCo has the right to swap BarleyCo over to an alternative fibre, but only for reasons of repair, maintenance or malfunction, in which case it must compensate BarleyCo for financial loss. In addition to a single up-front payment, the contract provides for TomCo to charge BarleyCo for a share of maintenance costs and for space, power and cooling within the TomCo buildings. BarleyCo is responsible for the installation and maintenance of its transmission equipment and is free to upgrade that…
solve both question and do not give solution in image format
ABC Franchisor entered into a franchise contract that will allow the franchisee to use ABC's copyright over a video. The contract is applicable for a period of 5 years. The transaction price is P100,00 cash to be paid on the date of grant. What is the journal entry to recognize the transaction price? [A] DR: Cash 100,000; CR: Franchise Revenue [B] DR: Cash - 100,000; CR: Contract Liability [C] DR: Contract Asset – 100,000; CR: Franchise Revenue [D] DR: Contract Asset – 100,000; CR: Contract Liability
6. On January 1 of year 1, XYZ Company is granted a tract of land in Davao Oriental by the current administration of the Philippines. The fair value of the land is P40,000,000. XYZ Company is required by the grant to construct a chemical research facility and employ personal residing within the locality. It is estimated that the cost of the facility will be P45,000,000 with 10 years of useful life. Beginning of year 2, the facility is ready for its intended usage. XYZ Company sets up the grant as a liability. Determine the balance of the liability at the end of year 4.
During the 2021/2022 financial year, the company had following events. On 1 April 2022, ABC Industry purchased additional 30,000 allowances on the market as the initially granted emission allowances seemed insufficient to settle their obligations (emission liabilities). On this date, the fair value of an allowance was $60. 1) How to recognise the Purchased emission allowances? As an intangible asset, inventory, debtor? Your team need to explain why the emission allowances should be recognised as such.