answers for financial accounting please

1.On March 30, 2020 XYZ Construction enters into a contract with Lusaka City Council to construct township roads at a price of K1,900,000. The contract attracts a performance bonus of K100,000 if the building is completed by July 31, 2020. The bonus is reduced by K20,000 each week that completion is delayed. XYZ commonly includes these completion bonuses in its road contracts and, based on experience, estimates the following completion outcomes: Completed by Probability July 31, 2020 60% August 7, 2020 30% August 14, 2020 8% August 21, 2020 2% a) Explain how the revenue under this contract will be recognized and show the Journal entry b) Assuming that the accountant had included the total of K 2,000,000 (K1,900,000 + performance bonus of K100,000) as part of revenue, are there any adjustments that should be made? if so, show the Journal entry. 2. Africonnect whose year-end is 31 December provide equipment, installation services as well as maintenance. Customers can purchase any product or service separately or as a bundled package. Mwaka one of the customers purchased a computer equipment, installation and maintenance services for a total cost of K28,800 on November 15, 2019. Estimated standalone fair values of the equipment, installation, and maintenance are K18, 000, K12, 000, and K6,000 respectively. The maintenance services covers a period of one year from date of purchase. a) Explain how the revenue under this contract will be recognized and show the Journal entry. b) Assuming that the accountant had included the total of K28, 800 us revenue on November 15, 2019, are there any adjustments that should be made. if so, show the Journal entry 3 Pep stores sells its product to customers with an unconditional sales return if they are not satisfied. On March 15, 2020. a customer purchases K2, 000 of products (cost K1,000). Based on prior experience, Pep estimated that 20% of the products sold under these condition are returned. The sales returns extends 60 days. PePs year-end is 31 March. a) Explain how the revenue under this contract will be recognized and show the Journal entry. b) Assuming that the accountant had included the total of K2,000 us revenue on On March 15, 2020 are there any adjustments that should be made? If so, show the Journal entry 4.On January 1 2020 Fun City sells K100,000 of furniture units to Taj Pamodzi, which is planning to expand its hotel rooms. Under the agreement, Taj Pamodzi asks Fun City to retain the furniture units at its shop until the new rooms are ready for use. Taj Pamodzi pays for the goods in full and Fun City removes them from display. Fun City normally charges a storage fee of K500 per month. The furniture units are delivered to Taj Pamodzi on September 1, 2020. a) Explain how the revenue under this contract will be recognized and show the Journal entry 5. Toyota Zambia sells a car to CBU on July 1, 2019, for K200,000. Toyota agrees to repurchase this car from CBU on June 30, 2020, for a price of K212,000 an imputed interest rate of 6% is assumed. b) Explain how the revenue under this contract will be recognized and show the Journal entry on July 1, 2019 and on June 30, 2020 1.On March 30, 2020 XYZ Construction enters into a contract with Lusaka City Council to construct township roads at a price of K1,900,000. The contract attracts a performance bonus of K100,000 if the building is completed by July 31, 2020. The bonus is reduced by K20,000 each week that completion is delayed. XYZ commonly includes these completion bonuses in its road contracts and, based on experience, estimates the following completion outcomes: Completed by Probability July 31, 2020 60% August 7, 2020 30% August 14, 2020 8% August 21, 2020 2% a) Explain how the revenue under this contract will be recognized and show the Journal entry b) Assuming that the accountant had included the total of K 2,000,000 (K1,900,000 + performance bonus of K100,000) as part of revenue, are there any adjustments that should be made? if so, show the Journal entry. 2. Africonnect whose year-end is 31 December provide equipment, installation services as well as maintenance. Customers can purchase any product or service separately or as a bundled package. Mwaka one of the customers purchased a computer equipment, installation and maintenance services for a total cost of K28,800 on November 15, 2019. Estimated standalone fair values of the equipment, installation, and maintenance are K18, 000, K12, 000, and K6,000 respectively. The maintenance services covers a period of one year from date of purchase. a) Explain how the revenue under this contract will be recognized and show the Journal entry. b) Assuming that the accountant had included the total of K28, 800 us revenue on November 15, 2019, are there any adjustments that should be made. if so, show the Journal entry 3 Pep stores sells its product to customers with an unconditional sales return if they are not satisfied. On March 15, 2020. a customer purchases K2, 000 of products (cost K1,000). Based on prior experience, Pep estimated that 20% of the products sold under these condition are returned. The sales returns extends 60 days. PePs year-end is 31 March. a) Explain how the revenue under this contract will be recognized and show the Journal entry. b) Assuming that the accountant had included the total of K2,000 us revenue on On March 15, 2020 are there any adjustments that should be made? If so, show the Journal entry 4.On January 1 2020 Fun City sells K100,000 of furniture units to Taj Pamodzi, which is planning to expand its hotel rooms. Under the agreement, Taj Pamodzi asks Fun City to retain the furniture units at its shop until the new rooms are ready for use. Taj Pamodzi pays for the goods in full and Fun City removes them from display. Fun City normally charges a storage fee of K500 per month. The furniture units are delivered to Taj Pamodzi on September 1, 2020. a) Explain how the revenue under this contract will be recognized and show the Journal entry 5. Toyota Zambia sells a car to CBU on July 1, 2019, for K200,000. Toyota agrees to repurchase this car from CBU on June 30, 2020, for a price of K212,000 an imputed interest rate of 6% is assumed. b) Explain how the revenue under this contract will be recognized and show the Journal entry on July 1, 2019 and on June 30, 2020