Copier Ltd manufactures and sells small home photocopiers to homes and small businesses; it also sells cartridges to go in the copiers and monthly magazines on running a small business.
Consider the following transactions:
1. It delivers 10 photocopiers; the customer promises to pay $20 000 within two months.
2. It buys a motor vehicle with a list (or 'sticker') price of $41 000 for $31 200 cash.
3. It receives orders for 1000 ink cartridges from customers for $18 each for future delivery. The terms require payment in full within 30 days of delivery.
4. It completes production of the ink cartridges described in point 3 and delivers the order.
5. It issues $2 million in new shares.
6. It receives a total of $3600 from subscribers to the magazine. The subscriptions cover a full 12 editions for the 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, and indicate the revenue account title and amount. If revenue is not to be recognised this year, explain why.