Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. On 1 April 2019, MIB enters into a contract to design, manufacture and sell a customised machine to a customer for a consideration

image text in transcribed

a. On 1 April 2019, MIB enters into a contract to design, manufacture and sell a customised machine to a customer for a consideration of RM 5 million. The customer pays a non-refundable deposit of RM 1 million. The balance is payable only on delivery of the machine (expected to be 1 April 2020). MIB determines that the designing and manufacturing promises are bundled as a single performance obligation. Because MIB has no enforceable right for payment, the performance obligation is satisfied only at the date when the machine is delivered and installed. At 31 December 2019, the costs incurred to date amount to RM 1.8 million. Further costs to complete the contract are estimated at RM 1.1 million. Required: Prepare journal entries in the books of MIB from the date customer entered into the contract until the delivery date of the said machine.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Marketing

Authors: Svend Hollensen

8th Edition

1292251808, 9781292251806

More Books

Students also viewed these Accounting questions

Question

Consider the following four structures: (i) See Figure 9.23:

Answered: 1 week ago

Question

using the 3 NF synthesis algorithm to construct a lossless

Answered: 1 week ago