Question: QUESTION 5 IT Gadget Co. provides hardware, software and IT services to small and medium business customers. It has developed an accounting software package.

QUESTION 5 IT Gadget Co. provides hardware, software and IT services to small and medium business customers. It has developed an accounting software package. The company offers a supply and installation service for RM10,000 and a separate two-year technical support service for RM5,000. During the year, IT Gadget enters into a contract with Customer B and offers a combined goods and services contract which includes both of these elements for RM12,000. Payment for the combined contract is due one month after the date of installation. Required: a) Identify the performance obligation(s) within the contract with Customer B. b) Discuss the allocation of transaction price to each performance obligation. (4 marks) (6 marks) (Total 10 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Mighty IT Co provides hardware, software and IT services to small business customers. Mighty IT Co has developed an accounting software package. The company offers a supply and installation service...

Question 1. Question 1 To be useful, financial information must be relevant and faithfully represent a business's economic activities. This requires ethics, beliefs that help us differentiate right...

Question 1 To be useful financial information must be relevant and present business's economic activities. This requires this, belief that help us diferente right from wrong in the application of...

Question 2 5 pts [Your answer must be supported by relevant IFRS/PSAK standard] [Show your computation] PT. Teknologi Utama (TU) provides hardware, software and IT services to small business...

Help on Financial Statement analysis homework, need a perfect solution to improve grade UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10- K (Mark One) 3 ANNUAL REPORT...

CASE7 Apple Inc.: Performance in a Zero- Sum World Economy Moustafa H. Abdelsamad, Hitesh ( John) Adhia, David B. Croll, Bernard A. Morin, Lawrence C. Pettit Jr., Kathryn E. Wheelen, Richard D....

Apple Inc: Performance in a Zero-Sum World Economy ON NOVEMBER1, 2010, JOHN TARPEY, SENIOR FINANCIAL ANALYST at a securities firm, was sitting at his conference table to begin the task of fully...

Refer to the statement of cash flows for both Kelloggs and General Mills for the most recent year and any other pertinent information reprinted at the back of this book. Required 1. Compute each...

1. Give two examples of each of the following elements of fiction and nonfiction from the texts youve read in units 1, 2, and 3. Characters: plot: conflict: setting: point of view: theme: style:...

Old Age Security benefits: a. Can be deferred five years, which would increase your benefit by 36 percent. b. Are not subject to a means test. c. Can be claimed at age 60, but at a reduced amount. d....

The force constant of a massless spring is 2 5 . 0 N / m . A mass of 0 . 4 5 kg is oscillating in simple harmonic motion at the end of the spring

What would you do if you were the IHR manager? Expanding the international workforce to include non-parent-country employees has brought increased capabilities and decreased costsalong with a new set...

What would you have predicted for the acceptance or rejection of the incentive compensation scheme at Canon in Japan? As multinational firms open more and more operations in more and more countries,...

Describe the importance of developing an international performance management system.