question archive Consider the following transactions:1It delivers 15 photocopiers; the customer promises to pay $30 000 within two months
Consider the following transactions:1It delivers 15 photocopiers; the customer promises to pay $30 000 within two months
Subject:AccountingPrice: Bought3
Consider the following transactions:1It delivers 15 photocopiers; the customer promises to pay $30 000 within two months.2It buys a motor vehicle with a list (or‘sticker’) price of $41 000 for $31 200 cash.3It receives orders for 1000 ink cartridges from customers for $22 each for future delivery. The terms requirepayment in full within 30 days of delivery.4It completes production of the ink cartridges described in point 3 and delivers the order.5It issues $2 million in new shares.6It receives a total of $4800 from subscribers to the magazine. The subscriptions cover a full 12 editions forthe year. Only the first edition has been posted to customers.For each of the above transactions, state if revenue is to be recognised in the current financial year, andindicate the revenue account title and amount. If revenue is not to be recognised this year, explain why.
