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Question 2 ( 2 1 marks ) Simpson Inc. buys and sells machines that are used in businesses across Ontario. The company follow IFRS. Simpson
Question marks Simpson Inc. buys and sells machines that are used in businesses across Ontario. The company follow IFRS. Simpson Inc sells a machine to Bart Inc. on August th The selling price for the machine is usually $ Simpson inc. will also install the machine. The estimated fair value of installing the machine is $ Simpson Inc. will also provide maintenance for the machine for years. The estimated fair value of maintenance is $ Simpson lnc sold the machine, installation and maintenance to Bart lnc for $ The machine cost simpson inc $ The company uses the perpetual inventory system Simpson inc bills and delivers the machine on september st Simpson completes the installation of the machine on september th The customer pays cash for the installation on september The maintenance starts on october The customer pays cash for the years of maintenance. On November let Bart Inc. infoms Simpson Ine, that they will be not be able to pay their account that is due. The two parties enter into an agrement that the account will be converted into a noninterest bearing promissory note to be repaid in one year from now: Bart Inc. borrows fund at a rate of The company's year end is December : i Identify the performance obligations and calculate the revenue for each performance obligation marks Hint frier to chapter allocating the transaction price to separate perfomance obligations. i Prepare the joumal entries for and Hint remember to allocate the revenue among the different performance obligations and then use this infomstion when you prepare the joumal entries In other use the anawers you calculated in part In your answer do not use the discount on notes account. marks Hint this part uses concepts from chapter and chapter noninterest bearing notes.
Question marks
Simpson Inc. buys and sells machines that are used in businesses across Ontario. The company follow IFRS.
Simpson Inc sells a machine to Bart Inc. on August th The selling price for the machine is usually $
Simpson inc. will also install the machine. The estimated fair value of installing the machine is $
Simpson Inc. will also provide maintenance for the machine for years. The estimated fair value of maintenance is $
Simpson lnc sold the machine, installation and maintenance to Bart lnc for $ The machine cost simpson inc $ The company uses the perpetual inventory system
Simpson inc bills and delivers the machine on september st
Simpson completes the installation of the machine on september th The customer pays cash for the installation on september
The maintenance starts on october The customer pays cash for the years of maintenance.
On November let Bart Inc. infoms Simpson Ine, that they will be not be able to pay their account that is due. The two parties enter into an agrement that the account will be converted into a noninterest bearing promissory note to be repaid in one year from now: Bart Inc. borrows fund at a rate of The company's year end is December :
i Identify the performance obligations and calculate the revenue for each performance obligation marks Hint frier to chapter allocating the transaction price to separate perfomance obligations.
i Prepare the joumal entries for and Hint remember to allocate the revenue among the different performance obligations and then use this infomstion when you prepare the joumal entries In other use the anawers you calculated in part In your answer do not use the discount on notes account. marks Hint this part uses concepts from chapter and chapter noninterest bearing notes.
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