Mobile Two Ltd (M2) is a telecommunications provider

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Mobile Two Ltd (M2) is a telecommunications provider. The company entered into a contract on 1 January 2021 to sell the latest iPhone 12 bundled with a two-year service line to a customer. The bundled price of the phone costs $730 and the two-year service line costs $59 per month. The customer will pay for the price of the phone immediately upon signing the contract, and the monthly subscription of $59 is to be paid at the end of each month. The stand-alone selling price of the phone set and the service line is $1,000 and $52 respectively. Required: (a) Identify the performance obligations in this contract. (4 marks) (b) How much revenue should be recognised in the year ended 31 December 2021. Show all your workings clearly and round off answers to the nearest cent, where applicable. (10 marks) Based on your answers in (b) above, prepare the necessary journal entries. (10 marks)