Question
Please, I need a correct answers. Thank you, Application Problem On February 13, 2018, MacMulka entered into a contract with Samdon to supply 10 advanced
Please, I need a correct answers. Thank you,
Application Problem
On February 13, 2018, MacMulka entered into a contract with Samdon to supply 10 advanced baby monitors in their daycare facility. Details of the contract are as follows:
The contract is worth $14,500 and includes the supply and complete installation of the monitors.
The individual machines can be purchased for $1,400 each.
The cameras are purchased in bulk from a third party at a cost of $800 each.
When MacMulka does installation and configuration work for other customers, they normally charge $120 per machine. This work includes both the physical installation and the configuration. It is estimated that 80% of the total time spent is on the configuration of the software.
The contract requires the cameras to be installed by March 15, 2020.
Required:
Apply the IFRS 15 - 5 step model to the above transaction.
Prepare the journal entries
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