GHF Computer Systems Inc. maintains office equipment under contract. The contracts are for labour only; customers must
Question:
GHF Computer Systems Inc. maintains office equipment under contract. The contracts are for labour only; customers must reimburse GHF for parts. GHF’s rate schedule follows:
GHF’s 2018 sales of maintenance agreements is set out below:
Required:
Assuming that sales occurred evenly throughout the year:
a. What amount of revenue will GHF recognize for the year ended December 31, 2018?
b. What amount of deferred revenue will GHF report as a current liability on December 31, 2018?
c. What amount of deferred revenue will GHF report as a non-current liability on December 31, 2018?
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