On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the contract was P 1,000,000. It was specified that the total amount will be paid on an installment basis. the following items and services will be provided to the customer:• Merchandise • Invoice Printer• Shop neon Logo• Staff TrainingAll of these will be provided and exclusively supplied by the seller company. The contract listed the following price breakdown:• Merchandise 900,000• Invoice Printer 55,000• Shop Neon Logo signboard 15,000• Staff Training 30,000The first installment payment was made 5 months before the opening of the store. All the required training of the staff was completed before the start of the operation. The store started its operation on December 12, 2020, but the shop sign was not yet installed as of this date.Required: Compute the revenue from the contract as of December 31, 2020
On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the contract was P 1,000,000. It was specified that the total amount will be paid on an installment basis. the following items and services will be provided to the customer:• Merchandise • Invoice Printer• Shop neon Logo• Staff TrainingAll of these will be provided and exclusively supplied by the seller company. The contract listed the following price breakdown:• Merchandise 900,000• Invoice Printer 55,000• Shop Neon Logo signboard 15,000• Staff Training 30,000The first installment payment was made 5 months before the opening of the store. All the required training of the staff was completed before the start of the operation. The store started its operation on December 12, 2020, but the shop sign was not yet installed as of this date.Required: Compute the revenue from the contract as of December 31, 2020
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On May 12. 2020, a customer bought a business package from the seller of gadgets. The price of the contract was P 1,000,000. It was specified that the total amount will be paid on an installment basis. the following items and services will be provided to the customer:• Merchandise • Invoice Printer• Shop neon Logo• Staff TrainingAll of these will be provided and exclusively supplied by the seller company. The contract listed the following price breakdown:• Merchandise 900,000• Invoice Printer 55,000• Shop Neon Logo signboard 15,000• Staff Training 30,000The first installment payment was made 5 months before the opening of the store. All the required training of the staff was completed before the start of the operation. The store started its operation on December 12, 2020, but the shop sign was not yet installed as of this date.Required: Compute the revenue from the contract as of December 31, 2020
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