Determine the entries to record the transactions

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Q1. AAA Company entered into a contract with a private company on July 1, 2020. The private company subscribes for a monthly plan for 12 months and in return, the private company receives free handset. The private company will pay monthly fee of P1,600 and it gets the handset immediately after signing the contract. AAA sells the same handset for P4,800 and the same monthly plans for P1,280 without the handset. Determine the following: a. Revenue to be recognized on 2020 and 2021 b. Entries to record the transactions for 2020 and 2021.

Q2. BBB Company was organized in 2020. The firm entered into a contract with a private company to do the following: bookkeeping activities, preparation of monthly and annual financial statements and annual tax returns. The annual fee is P100,000 for bookkeeping services, P5,000 for monthly reports and P50,000 for annual report and tax return. Determine the following: a. Revenue to be recognized on 2020 b. Entries to record the transactions.

Reference no: EM133013861

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