Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help Question 2 (20 Marks) Jive Ltd publishes magazines. On 01 April 2021, it receives N$25 000 from a subscriber for a 12 month

image text in transcribed

Please help

Question 2 (20 Marks) Jive Ltd publishes magazines. On 01 April 2021, it receives N\$25 000 from a subscriber for a 12 month subscription period, from 01 April 2021 to 31 March 2022. The financial year end of Jive Ltd is 31 December YOU ARE REQUIRED TO: a) Prepare the journal entry to be recognized on receipt of the cash from the subscriber on 01 April 2021. (2 marks) b) Calculate the amount of income to be recognized in respect of the subscription for the year ended 31 December 2021 and explain why this is recognized as income. Justify your answer using the Conceptual Framework. (5 marks) c) Calculate the amount of the asset or liability to be recognized on the statement of financial position in relation to the subscription at 31 December 2021 and explain why this is recognized as an asset or liability. Justify your answer using the Conceptual Framework. (6 marks) d) State the recognition criteria of the Conceptual Framework. (4 marks) e) Describe measurement in terms of the Conceptual Framework and state the measurement bases

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

Audits Of 401k Plans

Authors: Deloitte And Touche

2nd Edition

1119722039, 978-1119722038

More Books

Students also viewed these Accounting questions