Question
Question 1 If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would
Question 1
If an entity recognises the revenue associated with a contract with a customer over time (rather than at a point in time), would this approach be considered more conservative than an approach that defers profit recognition until the completion of the contract (that is, at a future point in time)?
Question 2
First Point Ltd commences operations by issuing 1 million shares at a price of $1.40 per share, payable in full on application. Application monies are received on 31 July 2023 and the shares are allotted on 4 August 2023. The share issue is made as a result of an offer being made to the public. Provide the journal entries to account for the receipt of the application monies and the subsequent allotment of the shares.
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