User Account

All Pages

Calculate the revenues allocated to each of the services

Assignment Help Accounting Basics
Reference no: EM132743718

Question: Andrews Ltd provides a bundled service offering to Sutton Ltd. It charges Sutton Ltd $60,000 for:

• Initial connection to its networks;

• Access to the network for 1 year, and;

• on- call troubleshooting advice for the year

Sutton Ltd pays the $60,000 upfront, on 1 July 2020. Andrews Ltd determines that, if it were to charge a separate fee for each service if it sold separately, the fees would be:

Connection fee: 25,000

Access fee: 15,000

Troubleshooting: 27,000

The end of the reporting period for Andrews Ltd is 30 June:

Required: 1) Calculate the revenues allocated to each of the services being sold

2) Prepare the journal entries to record the transaction in accordance with AASB 15 on 1 July 2020

3) Prepare journal entries on 31 July 2020 to recognise revenue, assuming Andrews Limited determines satisfaction of performance obligations monthly.

Reference no: EM132743718

Questions Cloud

Should the hr compensation specialist favour internal equity : In making strategic pay policy decisions in a company, should the HR compensation specialist favour internal or external equity in wage and salary rates among.
What is the 4-year short rate : You believe in the liquidity preference theory and assume that there is a constant liquidity premium of 2.50%.
Explain price of the 5-zero coupon bond : Assuming that the expectations hypothesis is correct, what will the price of the 5-zero coupon bond be when it has 1 year left to maturity.
Find the weight of stock a in the minimum : There are two stocks, A and B. Stock A has an expected return of 7.5% per year with a standard deviation of 11.0%. Stock B has an expected return
Calculate the revenues allocated to each of the services : Calculate the revenues allocated to each of the services being sold. Prepare the journal entries to record the transaction in accordance with AASB 15 on 1 July.
What the most suitable rate of roi for division a : Division A for the year was P7 million before deducting head office allocated cost of P800,000. The most suitable rate of ROI for Division A for the year is ?
Calculate the portfolio actual return next year : Assuming the error term on the factor model is equal to 0, use a factor model to calculate the portfolio's actual return next year.
Total annual cost of machine : A machine is purchased for $70,000 and costs $25,000 per year in electrical and maintenance costs. The estimated life is 8 years and interest is at 4% compound.
What will be the preference for taking on the proposed : If Daffodil Corporation evaluates managerial performance using return on investment, what will be the preference for taking on the proposed new product?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd