a two-year period. The sale price of each contract is P600. The past experience is that, of the total pesos spent for the first contract year and 60% evenly during the second repairs on service contracts, 40% is incurred evenly during Dunne Company sells equipment service contracts that cover contract year. The entity sold 1,000 contracts evenly throughout 2020. 1. What is the contract revenue for 2020?
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- .LIA Co. sells service contracts that cover a 2-year period. The sale price of each contract is P2,000. LIA sold 1,000 contracts evenly throughout 20x1. LJ’s past experience shows that of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Requirements: How much are the current and noncurrent portions of the deferred revenue to be presented in LJ’s December 31, 20x1 statement of financial position? How much is the service revenue recognized in 20x2?Cobra Company sells appliance service contracts agreeing to repair appliances for a three-year period. The past experience is that the total amount spent for repairs on service contracts, 40% is incurred evenly during the first contract year, 25% is incurred evenly during the second contract year and 35% is incurred evenly during the 3rd contract year. Receipts from service contract sales are P500,000 for 2020 and P600,000 for 2021. How much is the balance of unearned revenue pertaining to 2020 sales as of December 2021?Stranger Company sells appliance service contracts, agreeing to repair appliances for a two-year period. Stranger’s past experience is that, of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. Receipts from service contract sales for the two years ended December 31, 2027, are as follows: 2026 – P500,000 2027 – P600,000 Receipts from contracts are credited to unearned service contract revenue. Assume that all contract sales are made evenly during the year. What amount should Stranger report as unearned service contract revenue at December 31, 2027? a. 360,000 b. 480,000 c. 630,000 d. 470,000
- AFFLUENT RICH Co. sells service contracts that cover a 2-year period. The sale price of each contract is P2,000. AFFLUENT sold 1,000 contracts evenly throughout 20x1. AFFLUENT's past experience shows that of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. How much are the (1) current and (2) noncurrent portions of the deferred revenue to be presented in AFFLUENT'S December 31, 20x1 statement of financial position?ABC Company sells appliance service contracts agreeing to repair appliance for 2-year period. ABC Company’s past experience is that, of the total amount for repairs on service contracts, 40% is incurred evenly during the 1st contract year and 60% evenly during the second contract year. Receipts from service contracts for the 2 years ended December 31, 2021, are as follows: 2020, P500,000; 2021, P600,000. Receipts from contracts are credited to unearned service contract revenue. Assume that all contract sales are made evenly during the year.Fajardo Company sells appliance service contracts agreeing to repair appliance for 2-year period. Fajardo Company’s past experience is that, of the total amount for repairs on service contracts, 40% is incurred evenly during the 1st contract year and 60% evenly during the second contract year. Receipts from service contracts for the 2 years ended December 31, 2021, are as follows: 2020, P500,000; 2021, P600,000. Receipts from contracts are credited to unearned service contract revenue. Assume that all contract sales are made evenly during the year. Group of answer choices 630,000 480,000 360,000 470,000
- ABC Company sells equipment service contracts that cover 2-year period. The sales price of each contract is P 5,000. ABC past experience shows that of the total pesos spent for repairs in service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. ABC sold 1,000 contracts evenly throughout 2018 and 800 evenly throughout 2019. In its December 31,2018 statement of financial position, what amount should ABC report as unearned revenue?ABC Co. sells equipment service contracts that cover a two-year period. The sales price of each contract is P600. ABC's past experience is that, of the total pesos spent for repairs on service contracts, 40% is incurred evenly during the first contract year and 60% evenly during the second contract year. ABC sold 1,000 contracts evenly throughout 2020. In its December 31, 2020, balance sheet, what amount should ABC report as deferred service contract revenue? O 600,000 O 480,000 O None of these O 520,000Kikiam Company sells equipment service contracts that cover a two-year period. The sales price of each contract is P4,000. Kikiam Company’s past experience shows that of the total pesos spent for repairs in service contracts, 40% in incurred evenly during the first contract year and 60% evenly during the second contract year. Kikiam Company sold 1,500 contracts evenly throughout 2020 and 900 contracts evenly throughout 2021. How much should Kikiam Company report as contract service revenue for the year ended December 31, 2021?
- The Naples Company uses the percentage-of-completion method and the cost-to-cost method for its long-term construction contracts. On one such contract, Naples expects total revenues of P260,000. During the first year, Naples incurred costs pf P50,000 and billed the customer P30,000 under the contract. At what net amount should Naples Construction in Progress for this contract be reported at the end of the first year? a. P 35,000 b. 65,000Newmarket's revenue as shown in its draft statement of profit or loss for the year ended 31 December 20X9 is $27 million. This includes $8 million for a consignment of goods sold on 31 December 20X9 on which Newmarket will incur ongoing service and support costs for two years after the sale. The supply of the goods and the provision of service and support are separate performance obligations under the terms of IFRS 15 Revenue from contracts with customers. The cost of providing service and support is estimated at $800,000 per annum. Newmarket applies a 30% mark-up to all service costs. At what amount should revenue be shown in the statement of profit or loss of Newmarket for the year ended 31 December 20X9? (Ignore the time value of money.)On January 1, 20x7, CVM Co began constructing a P2,100,000 contract. The entity uses the percentage of completion method. For the year ended December 31, 20x7, the Company billed its client an additional 55% of the contract price. Data relating to the construction follows: 20x7 Construction in progress Estimated cost to complete Cost incurred Excess of construction in progress over billings How much is the estimated remaining cost in 20x7? 441,000 ? 425,250 (84,000) 20x8 ? ? 969,000 (330,750) 20x9 ? 675,750