[simraawan]

Yes, Thank you!

[simraawan]

Thanks.

so the revenue recognized is for good 3,280,000 + revenue for service (720,000 * 4/12)= 240,000.
total revenue recognized is 3,520,000?

[simraawan]

Hello, I am not sure of how to estimate the stand-alone price for the equipment.

tech. support= 20% * 300,000= 60,000, selling price= 300,000+60,000= $360,000

estimate price= 3.9M
total price for equipment and service= 3.9m + 360,000= 4,260,000

discount= 4m-4,260,000= 260,000

discount %= 260,000/4,260,000 * 100= 6%

equipment= 94% * 3.9m =3,666,000- revenue recognized
services = 94% * 360,000= 338,400

[simraawan]

Progress: 45/100 = 9/20

Statement of proft/loss

revenue (9/20*100) = 45
cost (9/20*44 (total cost)) = 19.8
less: depreciation (16/2) = 8
profit= 17.2m

Statement of financial position

cost to date= 24
profit= 17.2
less: amount billed= 11.4
contract asset = 29.8m

[Author]

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