User Account

All Pages

Which statements correctly recognises the revenue

Assignment Help Financial Accounting
Reference no: EM132850788

Question - On 1 May 2021 Jaune Limited signed a contract with Rouge Limited for the supply of a van, free service and 12 months of car washing. The terms of the sale are:

-Sale price of van: $155,000.

-Weekly car washing for 12 months (i.e. 52 weeks), commencing after the first vehicle service: $5,000.

-Free vehicle service once it has travelled 10,000 kilometres.Rouge took ownership of the van on 1 June 2021, paying the $160,000 contract price. On 15 July 2021, Jaune performed the first vehicle service, with the weekly car washing commencing on that date.

If the van was sold without the free service, the selling price would be $145,000. Typically for Jaune, the vehicle service would be charged to the customer at $10,000 under its fixed price servicing plan. A single car wash retails for $120 each.

Which of the following statements correctly recognises the revenue from this contract in accordance with IFRS 15 Revenue from Contracts with Customers for the year ended 30 June 2021?

A. Revenue of $139,388 and a contract liability of $15,612.

B. Revenue of $143,885 and a contract liability of $16,115.

C. Revenue of $155,000 and trade receivable of $5,000.

D. Revenue of $145,000 and a contract liability of $15,000.

Reference no: EM132850788

Questions Cloud

STAT6000 Statistics for Public Health Assignment : STAT6000 Statistics for Public Health Assignment Help and Solution, Laureate International Universities - Assessment Writing Service
What is the journal entry to recognise current tax liability : What is the journal entry to recognise the current tax liability for Swiftback for the year ended 30 June 2021, including the utilisation of the tax losses
How would a spiritual needs assessment help the physician : How would a spiritual needs assessment help the physician assist Mike determine appropriate interventions for James and for his family or others involved.
What is the probability of drawing 2 kings : 1. What is the probability of drawing 2 Kings from a deck of 52 cards without replacement?
Which statements correctly recognises the revenue : Which of the following statements correctly recognises the revenue from this contract in accordance with IFRS 15 Revenue from Contracts
How ought the christian think about sickness and health : How ought the Christian think about sickness and health? How should a Christian think about medical intervention? What should Mike as a Christian do?
What is the value of the parking lot after ten years : Rump Hotels and Casinos has a $70,000 parking lot that is expected to grow in value at 5% annually, What is the value of the parking lot after ten years
Should the physician allow mike to continue making decisions : Should the physician allow Mike to continue making decisions that seem to him to be irrational and harmful to James, or would that mean a disrespect.
Explain the first-year retention rate : From the dataset Freshmen College Data.JMP, a school wants to explain the first-year retention rate (% of students who make it to the second year)

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the earnings per share and price-earnings ratio

The following information was taken from the financial statements of Finn Resources Inc. for December 31 of the current fiscal year: For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share..

  Find variable expense per unit

Find Variable expense per unit, and total fixed expenses. Would you advise adopting this plan?

  How much higher would companys first-year net income

How much higher would the companys first-year net income have been if absorption costing had been used rather than variable costing? Show computations.

  What value would place on one share of company

What value would you place on one share of this company's common stock? Is the company's common stock overpriced, underpriced, or fairly priced?

  What is the total current assets for under armour

What are the Total Current assets , Total liabilities, Net position, Operating Revenues, Total operating expenses, and Operating income for Under Armour

  What is the firm book value per share

Cardamom Corp.'s total common equity is $118.66 million. The company has 182.47 million shares outstanding. What is the firm's book value per share?

  Enter up the purchases day book and the returns outwarda

You are to enter up the Purchases Day Book and the Returns Outwards Day Book from the following details, then to post the items to the relevant accounts in the Purchases Ledger and to show the transfers to the General Ledger at the end of the mont..

  What does this tell you about the company

Calculate the company's times-interest-earned ratio for the year end. What does this tell you about the company

  Find what is wacc for daves inc

Find What is its WACC? The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares (so no flotation costs).

  What is the pv of operating cash flows

What is the PV of operating cash flows over the competitive advantage period and what is the residual value of the firm after the period of competitive advantage?

  Using the periodic inventory system and gross price method

On February 22nd, Felton returned $400 of damaged merchandise to Becker, Inc. Prepare the journal entry to record the transaction using the periodic inventory system and the gross price method.

  When a department or product line is dropped

When a department or product line is dropped, the common fixed costs that had been allocated to that department? become sunk costs and are not allocated.

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