Thor Computer Systems Inc. maintains office equipment under contract. The contracts are for labour only; customers must reimburse Thor for parts. Thor's rate schedule follows: One year Two years Three years Photocopies $220 $400 $620 Fax machine 175 340 440 Thor's 2026 sales of maintenance agreements is set out below: One year Two years Three years Photocopies 20 12 30 Fax machine 24 20 30 Required What amount of revenue will Thor recognize for the year ended December 31, 2026? What amount of deferred revenue will Thor report as a current liability on December 31, 2026? What amount of deferred revenue will Thor report as a non-current liability on December 31, 2026?

Thor Computer Systems Inc. maintains office equipment under contract. The contracts are for labour only; customers must reimburse Thor for parts. Thor's rate schedule follows: One year Two years Three years Photocopies $220 $400 $620 Fax machine 175 340 440 Thor's 2026 sales of maintenance agreements is set out below: One year Two years Three years Photocopies 20 12 30 Fax machine 24 20 30 Required What amount of revenue will Thor recognize for the year ended December 31, 2026? What amount of deferred revenue will Thor report as a current liability on December 31, 2026? What amount of deferred revenue will Thor report as a non-current liability on December 31, 2026?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10P

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