Show all relevant journal entries to record the revenue

Assignment Help Financial Accounting
Reference no: EM133132895

Question - The company offers two packages as follows: Package A sells a tablet with 5 years of network service. The contract price for the tablet and a 5-year network connection service is £600. The standalone selling price of the tablet is £300. Speedy Link sells the network access service independently for an upfront payment of £420. On 3 January 2021, Speedy Link signed 100 contracts, and customers paid the contract price in cash.

Package B includes the tablet and network service plus a service plan (for any upgrades to the tablet or the network connections) for the tablet during the 5-year contract period. The contract price for this package is £750. Speedy Link provides the 5-year tablet service plan as a separate product with a standalone selling price of £200. Speedy Link signed 400 contracts for Package B on 1 July 2021, and customers paid the contract price in cash.

Required -

(a) Show all relevant journal entries to record the revenue associated with this sale of Package A on 3 January 2021, and 31 December 2021.

(b) Show all relevant journal entries to record the revenue associated with this sale of Package B on 1 July 2021, and 31 December 2021.

Reference no: EM133132895

Questions Cloud

Prepare the journal entries to record the exchange : Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance
Why is economic development important : Why is Economic Development important in the Philippine economy?
Long run a perfectly competitive market : In the long run a perfectly competitive market with economic losses will experience
Why a business decision should be based on economic : Briefly explain with an example why a business decision should be based on economic costs not on accounting costs.
Show all relevant journal entries to record the revenue : Show all relevant journal entries to record the revenue associated with this sale of Package A on 3 January 2021, and 31 December 2021
Determine his total home office expense deduction : Mr. Basil maintained a salesman home office, and incurred the following related costs during 2021: $2,250 home utilities; Determine total home office expense
Recent official unemployment rate : As of January 2022, the official unemployment rate in the U.S. was about 4%, equal to the official U.S. unemployment rate of January 2019. This rate of 4% was m
Analyze the effects of each of the transactions : Analyze the effects of each of the transactions on each of the funds and nonfund accounts of the City of Timbuktu
Explain the upcoding and downcoding : What can you tell me about "upcoding" and "downcoding?"

Reviews

Write a Review

Financial Accounting Questions & Answers

  What the budgeted fixed cost for september

Among variances of the period were: total variable cost flexible-budget variance, $9,500U; What the budgeted fixed cost for September

  Evaluate the performance using the ROI, RI and EVA concepts

Knowing that the cost of opportunity is 3%, corporate tax is 21%, evaluate the performance using the ROI, RI and EVA concepts

  What equipment net after-tax salvage value for bing service

Bing can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment's net after-tax salvage value?

  Discuss limitations of the conceptual framework

General-purpose financial statements, describe and discuss the objectives and limitations of the conceptual framework for financial accounting.

  Journalize the transactions for powell company

Journalize the following transactions for Powell Company using the gross method of accounting for sales discounts. Assume a perpetual inventory system.

  Determine the cash paid by Jump

If assets are revalued and the capital balances of Hip and Hop after recording the admission of Jump are P 52,000 and P 88,000, Determine the cash paid by Jump

  Prepare a statement of cash flows for the year

Prepare a statement of cash flows for the year. If your answer is zero, enter "0". Use the minus sign to indicate cash out flows, a decrease in cash payments.

  Find what is the margin of safety ratio for harold

Find What is the margin of safety (MOS) ratio? (Input your answer as a percentage rounded to 2 decimal places (i.e., 0.1567 = 15.67%).)

  Company is considering the purchase of new machine

A company is considering the purchase of a new machine for $54,000. Management predicts that the machine can produce sales of $16,600 each year for the next 10 years. Expenses are expected to include direct materials, direct labor, and factory overhe..

  Prepare an acquisition analysis

ACC567 - Financial Accounting 2-Charles Sturt University Australia-Prepare the acquisition analysis at 1 July 2017. Prepare an acquisition analysis.

  Acquired new bottling equipment with a list price

On April 1, Clear Water Co., a water distiller, acquired new bottling equipment with a list price (fair market value) of $350,000. Clear Water received a trade-in allowance of $50,000 on the old equipment of a similar type and paid cash of $300,000

  How much compound interest will he earn

Stuart Daniels estimates that he will need $24,000 to set up a small business in 8 years. How much compound interest will he earn

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!

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