Step 5: Recognise Revenue as performance obligations satisfied. When Lingard Co delivers the set top box it revenue as performanceshould recognise revenue of $233.00. obligations satisfiedLingard Co should recognise revenue in respect of the TV access as access is provided to Monica. Therefore in the year ended 31March 20X5, revenue of $181.00 ($727 x 3/12) is recognised. A summary of the journals required in the period 1 January-31 March 20X5 is therefore: DEBIT Cash ($80 x 3) $240 DEBIT Receivable$174 CREDIT Revenue ($233 +$414+ $181)
Step 5: Recognise Revenue as performance obligations satisfied. When Lingard Co delivers the set top box it revenue as performanceshould recognise revenue of $233.00. obligations satisfiedLingard Co should recognise revenue in respect of the TV access as access is provided to Monica. Therefore in the year ended 31March 20X5, revenue of $181.00 ($727 x 3/12) is recognised. A summary of the journals required in the period 1 January-31 March 20X5 is therefore: DEBIT Cash ($80 x 3) $240 DEBIT Receivable$174 CREDIT Revenue ($233 +$414+ $181)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Step 5: Recognise Revenue as performance obligations satisfied.
When Lingard Co delivers the set top box it revenue as performanceshould recognise revenue of $233.00.
obligations satisfiedLingard Co should recognise revenue in respect of the TV access as access is provided to
Monica. Therefore in the year ended 31March 20X5, revenue of $181.00 ($727 x 3/12) is recognised.
A summary of the journals required in the period 1 January-31 March 20X5 is therefore: DEBIT Cash ($80 x 3)
$240
DEBIT Receivable$174
CREDIT Revenue ($233 +$414+ $181)
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