QUESTION 04 15 MARKS On 1 April 2019, Rodger signed a contract to purchase a motor vehicle from Superb Motors Ltd. The agreed purchase price in the signed contract is $20,000. The company also offers a free service of the vehicle. The free service will be performed one year after the delivery of the vehicle. The selling price of the vehicle, excluding the free service, is $20,900. The one year service is usually sold at $1,100. On 15 April 2019, Rodger paid the full amount and on the same day the motor vehicle is delivered to him. The free service was performed on the due date as agreed. The accountant of Superb Motors Ltd, Navdeep, seeks your help to apply 5 step model in NZ IFRS 15 (Revenue contracts with customers) for the above sale. Required: (a) Advise Navdeep how to recognise the revenues in accordance with the 5 strep model in NZ IFRS 15. (You are required to explain each step with calculations). (10 marks) (b) Write relevant journal entries to recognise revenue in terms of the 5 step model. (5 marks) Round all amounts to the nearest dollar