HERE Inc., a telecommunications operator, entered into a contract with Mr. X on March 1, 20x7. In line with the contract, Mr. X subscribes for HERE’s monthly plan for 12 months and in return Mr. X receives a free cellphone from HERE. Mr. X will pay a monthly fee or P5,000. Mr. X gets the handset immediately after the contract signing. Here sells the same handset for P26,000 and the same monthly plans for P3,250 per month without the handset. Determine the revenue to be recognized by HERE on March 31, 20x7.
On November 1, 20x5, GVF entered into a contract to buy a P225,000 machine from JDH. The contract requires GVF to pay P225,000 in advance on November 1, 20x5. The machine costs P165,000 and was delivered on November 30, 20x5. The journal entry by GVF for the delivery of the equipment will include:
On November 1, 20x8, GENERAL MERCHANDISING sold 300,000 pieces of their product to BUYING COMPANY at P9 per unit. Half of the units were delivered on December 15, 20x8 and 50% of the remaining units were delivered on January 5, 20x9 and the remaining units were delivered on January 15, 20x9. The payment requires a 50% down payment on November 15, 20x8, 25% due on the first delivery, 15% on the 2nd delivery and 10% on the third delivery. What amount of revenue should be recognized on January 5, 20x9?

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Lets solve the first question step by step Question 1 Revenue Recognition for HERE Inc Step 1 Understand the contract terms Mr X signed a contract wit... View the full answer