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exchange for the following perfor ight over the computer software tand-alone selling price of the in price of the 5 year right over the e

exchange for the following perfor ight over the computer software tand-alone selling price of the in price of the 5 year right over the e

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maipao Corporation sells computer software to Mr. Bong. Mr. Bong shall pay P750,000 upfront fee in exchange for the following performance obligations: (1) equipment (2) initial training and (3) five years right over the computer software. The stand-alone selling price of the equipment is P380,000. The stand-alone selling price of the initial training is P280,000. The entity estimates the stand-alone selling price of the 5 year right over the computer software using the residual approach. On February 1, 20x1, Maipao receive the P150,000 cash and the balance payable in 3 annual payments beginning January 30, 20x2. Mr bong signs a 10% interest bearing for the balance. On august 1, Maipao has already transferred the equipment and conducted the initial training and the software license will commence on the same date. The entity determines that the performance obligations in the contract are distinct. Requirements: 1) Assume Mr. Bong has the right to use the intellectual property. The journal entry on February 1, 20x1 will include: 2) Assume Mr. Bong has the right to use the intellectual property. The total revenue from license contract of Maipao Corporation on August 1, 20x1 is: 3) Assume Mr. Bong has the right to access the intellectual property. The total revenue of Maipao Corporation on December 31, 20x1 is:
Transcribed Image Text:Maipao Corporation sells computer software to Mr. Bong. Mr. Bong shall pay P750,000 upfront fee in exchange for the following performance obligations: (1) equipment (2) initial training and (3) five years right over the computer software. The stand-alone selling price of the equipment is P380,000. The stand-alone selling price of the initial training is P280,000. The entity estimates the stand-alone selling price of the 5 year right over the computer software using the residual approach. On February 1, 20x1, Maipao receive the P150,000 cash and the balance payable in 3 annual payments beginning January 30, 20x2. Mr bong signs a 10% interest bearing for the balance. On august 1, Maipao has already transferred the equipment and conducted the initial training and the software license will commence on the same date. The entity determines that the performance obligations in the contract are distinct. Requirements: 1) Assume Mr. Bong has the right to use the intellectual property. The journal entry on February 1, 20x1 will include: 2) Assume Mr. Bong has the right to use the intellectual property. The total revenue from license contract of Maipao Corporation on August 1, 20x1 is: 3) Assume Mr. Bong has the right to access the intellectual property. The total revenue of Maipao Corporation on December 31, 20x1 is:
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