total amount of revenue t
Q: On April 1, 2018, John Vaughn purchased appliances from the Acme Appliance Company for $1,200. In…
A: Given information is: On April 1, 2018, John Vaughn purchased appliances from the Acme Appliance…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: Given details: A) Stand-alone price of handset= $ $649.00 B) Stand-alone price of services =$1,536…
Q: On April 19, 2021, Millipede Machinery sold a tractor to Thomas Hartwood, accepting a note promising…
A: Note receivable: Note receivable refers to a written promise received by the creditor from the…
Q: Pina Universe charges an initial franchise fee of $ 234,000. Upon the signing of the agreement, a…
A: a. Date Particulars Debit ($) Credit ($) August 1, 2020 Cash 26,000 Notes receivable…
Q: On April 1, 2021, John Vaughn purchased appliances from the Acme Appliance Company for $1,200. In…
A:
Q: In December 2021, Jordan Inc and Otter-Manufacturing signed a 3 year contract for Jordon to update…
A: Present value of amount to be received = annual payments x Present value factor for advance payment…
Q: Huawey Company, a telco operator, entered into a contract with Badjyang on Feb. 1, 2019. In line…
A: It is pertinent to note that as per IFRS 15 if a contract consists of two or more goods and services…
Q: On January 1, 2021, Tropical Paradise borrows $37,000 by agreeing to a 6%, six-year note with the…
A: INTRODUCTION: An installment note is a legal obligation or responsibility that compels the borrower…
Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client…
A: Interest Income Interest income refers to the amount of money that is paid by the borrower to the…
Q: On January 1, 2021, Tropical Paradise borrows $36,000 by agreeing to a 5%, four-year note with the…
A: Journal entry to record issue of installment note and first two monthly payments are as under:
Q: On January 1, 2024, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the…
A: Lets understand the basics.Journal entry is required to make to record event and transaction that…
Q: HERE Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In…
A: Following is the answer to the given question
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: 1. Calculate the amount of transaction price.
Q: On November 1, 2021 a customer enters into a contract with MyWatch, Inc. to purchase an eWatch plus…
A: The Accrual basis accounting states that revenue should be recognized as and when the service or…
Q: All In Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 10%…
A: Initial measurement amount=1000000-55200+30770 =975570
Q: Zahava Corporation sells equipment to Ari Company for $700,000. Ari does not need the equipment…
A: 1. Journal Entry In the books of Z
Q: Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: On April 1, 2024, Antonio purchased appliances from the Acme Appliance Company for $1,600. In order…
A: Appliances cost = $1,600Number of monthly payments = 18Annual interest rate = 24%
Q: HERE Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In…
A: On March 1, 20x7, HERE Inc, a telecommunications operator entered into contract with Mr. X Mr. X…
Q: Upon January 1, 2020, Sally Corp. borrowed $360,000 from County Bank and signed a 15-year note…
A: It is simply a fee levied against the borrower for the use of an asset. Borrowed assets might…
Q: All In Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 10%…
A: Digital bank will recognize financial assets in his books
Q: Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifyin On 30 June…
A: According to the time value of money theory, money that is available now is worth more than the same…
Q: On January 1, 2021, Mrs. Erich entered into a franchise agreement with KK to market their products.…
A: Franchise Account In the franchise accounting there must be a specific contract with the franchisor…
Q: On March 1, 20X1, Token Texx (TT), a telecommunications operator, entered into a contract with…
A: Revenue recognition principle is a significant accounting assumption to be followed by a business…
Q: Blue Skies Bank of Florida issues a three-month (90-day) negotiable CD in the amount of $20 million…
A: CD is certificate of deposit that have interest rate specified on that and will receive amount on…
Q: On January 1, 2018, the Montgomery Company agreed to purchase a building by making six payments. The…
A: 1)
Q: ABC Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x2. In line…
A: Revenue recognition principle says that all revenues are recognised by the business when these are…
Q: On December 31, 2019, Entity A enters into a contract with Customer B to transfer a license for a…
A: A franchise agreement seems to be a legal contract that establishes a franchise connection between a…
Q: On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays…
A: The journal entries for Fulton Inc. are shown as below: Working Notes: Computation of…
Q: Sigma Bank granted a loan to a borrower in the amount of P 5,000,000 on January 1, 2021. The…
A: You have asked more than three subparts as per guidelines we can only solve first three subparts if…
Q: On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk…
A: In the given case, Company enters into two years contract The cost of a wireless plan is $68 per…
Q: On January 1, 2022, Anderson Company purchased a machine with a cost of $14,409.50. To complete the…
A: Lets understand the basics. When any asset is purchased against the loan then asset needs to…
Q: On January 1, 2021, Tropical Paradise borrows $50,000 by agreeing to a 6%, six-year note with the…
A: A bank is a financial institution which accepts cash or deposits from customers and grants loans to…
Q: Use the following information for the next two questions. Funan Industries purchases new…
A: PV of notes payable=Cash price-down payment =79000-10000=69000
Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client…
A: Interest Income - It is the amount of money paid by the borrower over and above the loan amount to…
On July 1, 2022, John entered into a 12-month telecom plan with Cabinet Telecom. The terms of the plan includes the following:
Calida's monthly fixed fee is P2,000.
Calida receives a free handset at the inception of the plan.
Tela Telecom sells the same handsets for P6,000 and the same monthly prepayment plans w/out handset for P1,600/month.
Determine the total amount of revenue to be recognized by Cabinet Telecom in 2022
Step by step
Solved in 2 steps with 2 images
- Huawey Company, a telco operator, entered into a contract with Badjyang on Feb. 1. 2019. In line with the contract, Badjyang subscribes for a monthly plan for 12 months and in return receives a free handset model 2019. Badjyang monthly fee of P1,800 starting Feb. 28, 2019 The standalone selling price of Huawey handset model 2019 is P6,000 and the monthly plans for P1,500 a month will рay a without the handset. 10. The amount of receivable recorded on Feb. 28, 2019 P1,500 d. P1,800 а. PO с. b. P1,350 11. The total revenue for the period ended Dec. 31, 2019 amounted to: P20,250 d. P27,600 a. PO С. b. Р24,000HERE Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In line with the contract, Mr. X subscribes for HERE’s monthly plan for 12 months and in return Mr. X receives a free cellphone from HERE. Mr. X will pay a monthly fee or P5,000. Mr. X gets the handset immediately after the contract signing.Here sells the same handset for P26,000 and the same monthly plans for P3,250 per month without the handset. Determine the revenue to be recognized by HERE on March 31, 20x7.On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk and 5 GB data wireless plan for $64.00 per month. The contract includes a smartphone for which the customer pays $299.00. Loud also sells the smartphone and monthly service plan separately, charging $649.00 for the smartphone and $64.00 for the monthly service for the unlimited talk and 5 GB data wireless plan. On July 1, 2019, the customer realizes that she needs less data in her wireless plan and downgrades to the unlimited talk and 2 GB data plan for the remaining term of the contract (18 months). The unlimited talk and 2 GB data plan is priced at $45.00 per month. The $45.00 per month is Loud’s current stand-alone price for this plan that is available to all customers.
- Pina Universe charges an initial franchise fee of $ 234,000. Upon the signing of the agreement, a payment of $ 26,000 is due. Thereafter, 5 annual payments of $ 41,600 are required. The credit rating of the franchisee is such that it would have to pay interest at 9% to borrow money. The franchise agreement is signed on August 1, 2020, and the franchise commences operation on October 1, 2020. Prepare the journal entries in 2020 for the franchisor under the following assumptions. a. No future services are required by the franchisee once the franchise starts operations. b. The franchisor has substantial services to perform, once the franchise begins operations, to maintain the value of the franchise. c. The total franchise fee includes training services (with a value of $ 6,900) for the period leading up to the franchise opening and for 2 months following openingMoon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered. Required: Question 4 Calculate the present value of the $71,600 to be received on 30 June 2025.On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Please assist with the journal entries. Thank you! There are 8 journal entries in all.
- On January 1, 2019, Loud Company enters into a 2-year contract with a customer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan. Required: 1. Calculate the transaction price for the smartphone and unlimited talk and 5 GB data wireless plan assuming that Loud allocates consideration based on stand-alone prices.2. Record the initial journal entry for Loud Company’s sale of a 2-year contract on January 1, 2019, and the monthly journal entry.On November 1, 2021 a customer enters into a contract with MyWatch, Inc. to purchase an eWatch plus a one year internet data plan for the watch for a combined price of $700. Each item may be purchased separately from MyWatch, Inc. The standalone selling price of the eWatch is $500 and the standalone selling price of the one year internet data plan is $300. The customer pays MyWatch, Inc. $400 when the contract is signed. MyTWatch, Inc. bills the remaining $300 balance evenly over the contract period of one year. What is the correct accounting for the sale of the ewatch and the data plan? Question 19 options: a) MyWatch would record unearned revenue of $200 when the customer takes control of the ewatch. b) MyWatch would record sales revenue of $500 when the customer takes control of the ewatch. c) MyWatch would recored sales revenue of $438 when the customer takes control of the ewatch.…Value Dealership Inc. markets and sells the vehicles to retail customers. Along with a new vehicle purchase, a customer will receive a free annual maintenance contract for one year from the date of purchase. The standalone selling price of a vehicle is $30,000 and the standalone selling price for the annual maintenance contract is $500. During October 2020, Value Dealership Inc. sold 72 vehicles for $30,250 per vehicle, each with a free annual maintenance contract. Note: Carry all decimals in calculations; round the final answer to the nearest dollar. a.) Ignoring the cost entries, record the journal entry in October 2020 for Value Dealership’s sale of vehicles with the associated maintenance contracts to customers. b.) Assume the same information above except that the standalone selling price of the annual maintenance contract is not known because this was the first time Value Dealership offered the service. Value Dealership is uncertain as to what services, on average, a customer…
- ABC Inc, a telecommunications operator, entered into a contract with Mr. X on March 1, 20x2. In line with the contract, Mr. X will subscribe to ABC Inc's monthly plan for 12 months and in return Mr. X receives a free cellphone from ABC Inc. Mr. X will pay a monthly fee of P5,000. Mr. X will get immediately the handset after the contract signing. ABC Inc sells the same handset for P26,000 and the same monthly plan for P3,250 per month without the handset. Determine the revenue to recognized by H Inc. on April 30, 20x7. [A] 27,000 [B] 5,000 [C] 3,250 [D] 3,000Please provide a detailed answer.Please walk me through this.