The company rents vehicle and has contracts with customers that run from Sep to June. Customers...

The company rents vehicle and has contracts with customers that run from Sep to June.

Customers pay the yearly fee in advance for the rentals. In September 2001, the company received $70,000 cash and recorded it as rental income.

What is Dec 31,2001 year-end adjusting entries for this transaction under IFRS.

Solutions

Expert Solution

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Jan rents cars and small vans to individual and business customers. The company has twelve branches...

Jan rents cars and small vans to individual and business customers. The company has twelve branches located in large towns spread across Jan’s home country. Each of Jan’s branches has its own computer network which stores details of all vehicles located at the branch, advanced bookings and current rentals. The only paper records held at branches are the signed rental agreements. Everything else is held electronically. Each branch has several PCs that are linked to a branch server where all...

Prestige Automobile Rental (PAR) is a vehicle rental company that rents old vehicles to the public....

Prestige Automobile Rental (PAR) is a vehicle rental company that rents old vehicles to the public. PAR has been using manual methods for keeping track of their customers and their rentals. However, the company would now like to go online and allow customers to search the available vehicles and see their rental history. For the first time, when the customer rents a vehicle from PAR their details (name, address, phone number, driving license number and credit card number) are recorded....

Tom Terrific leases rafts from a supplier and rents them to customers who use them to...

Tom Terrific leases rafts from a supplier and rents them to customers who use them to float down the Illinois river. Each day Tom leases 30 rafts from his supplier, at a cost of $15 per raft. He rents them to his customers for $30 per day. Rental demand follows a normal distribution, with a mean of 30 rafts and a standard deviation of 6 rafts. (Once generated, make all demands integers in your model using INT function – see...

Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides...

Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has obtained the use of an abandoned ice rink located in a local shopping mall, where its rental products are displayed and available for casual hourly rental by mall patrons. The following transactions occurred during the first month of operations. 1. Jessica contributed $50,000 cash to the company on June 1 in exchange for its common...

Revenue Recognition: Understanding the Impact of IFRS 15 - Revenue from Contracts with Customers Rodney Redding ...

Revenue Recognition: Understanding the Impact of IFRS 15 - Revenue from Contracts with Customers Rodney Redding Brent T. McCallum* Abstract In May 2014, the International Accounting Standards Board issued International Financial Reporting Standard (hereafter IFRS) 15 “Revenue from Contracts with Customers”. The standard replaces the International Accounting Standards (IAS) 18, “Revenue” and IAS 11, “Construction Contracts.” The accounting guidelines under IFRS 15 will become authoritative in 2018. Some companies may not see significant changes in the amount of revenue recognized....

When cities prevent landlords from charging market rents, which of the following are common long-run outcomes?

Effects of rent control Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. The future supply of rental housing units increases. Efficient use of housing space results. Black markets develop. Landlords...

On June 1, 2019 Futures-B Company buys for speculation 100 contracts on the Chicago Board of...

On June 1, 2019 Futures-B Company buys for speculation 100 contracts on the Chicago Board of Trade (CBT) to buy August delivery of wheat from a certified warehouse. Each contract is in units of 5,000 bushels at a future price of $1.50 per bushel. The contracts will be settled on August 31, 2019 at the spot price. The following information applies: June 1 June 30 July 31 Futures price per bushel $1.50 $1.55 $1.40 Spot price per bushel $1.48 $1.44 $1.40 Fair Value of Contract$ 0 Required: Parts c, e, g, i,...

Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have...

Recently, the effects from Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606) have been seen in most public firms. While many firms indicated that adoption of the new revenue recognition principle had no effect upon the timing of their revenue recognition, some firms indicated the new principle had significant effects upon their statements. For the firms where the new principle affected the timing of revenue, did the new revenue recognition principle speed or slow revenue recognition. Explain.

ABC Satellite, a satellite television company, sells satellite television service contracts to customers, usually for a...

ABC Satellite, a satellite television company, sells satellite television service contracts to customers, usually for a 24-month period. ABC satellite is a fast-growing, high-paced company created by aggressive salesmen and saleswomen. The company’s success has made its owners very wealthy; many of them live a lavish lifestyle and drive luxury cars to work. The retention division of this company is responsible for contacting customers nearing the end of their contract and convincing the customer to renew their contract. Retention agents...

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used...

1.The revenue recognition standard, Revenue from Contracts with Customers, states a specific approach should be used by companies to recognize revenue. The standard: a.Requires an asset-liability approach because an asset or a liability may stem from the terms of the contract and measuring the change in the asset or liability over the life of the contract results in a disciplined approach to measuring and recognizing revenue. b.Requires an earned-realized approach because the contract will result in revenue being earned and...

Subjects