Answered step by step
Verified Expert Solution
Question
1 Approved Answer
OC signed a contract to provide office cleaning services for an entity for a period of one year from 1 October 2009 for a fee
OC signed a contract to provide office cleaning services for an entity for a period of one year from 1 October 2009 for a fee of R500 per month. The contract required the entity to make one payment to OC covering all twelve months service in advance. The contract cost to OC was estimated at R300 per month for wages, materials and administration costs. OC received R6,000 on 1 October 2009. How much profit/loss should OC recognise in its statement of comprehensive income for the year ended 31 March 2010?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started