Answered: How much contract revenue will Eugene…

Business

Accounting

How much contract revenue will Eugene recognize in 20x1?

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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On January 1, 20x1, ABC enters into a 4-year lease of office equipment. The rent in 20x1 is ₱10,000and shall increase by 10% annually starting on January 1, 20x2. Rentals are payable at the end of each year. ABC Co. pays the lessor a lease bonus of ₱5,000 on January 1, 20x1. ABC Co. opts to use the practical expedient allowed under PFRS 16 for leases of low value assets. How much is the lease expense in 20x1?
On 12-31-21, Austin entered into an agreement that required Austin to pay a supplier $4,000 every year on 12-31 until 12-31-30. The agreement required Austin to make the first annual payment on 12-31-24. Assume the market rate of interest for Austin is 6%. As of 12-31-21 what was the present value of Austin's obligation?
On March 1, 20X1, Token Texx (TT), a telecommunications operator, entered into a contract with Dianne Gonzales. In line with the contract, Dianne subscribes to TT’s monthly plan for 12 months, and in return, Dianne receives a free Samsung handset from TT. Dianne will pay a monthly fee of P1,200. Dianne gets the handset immediately after signing contract. TT sells the same handset for P2,400 and the same monthly plans for P800 per month without the handset. On March 1, 20X1, how much revenue from sale of goods should be recognized by TT?
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The payments required on a contractual obligation are $800 per month. The contract was purchased for $9,250 just before a regular payment date. The purchaser determined this price based on a required rate of return of 4.3% compounded monthly. How many payments will be required, include the partial final payment? 12 payments 24 payments 9 payments 6 payments 18 payments