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In: Accounting

Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to...

Eureka Design Bhd entered into a contract to deliver one of its fixtures and fittings to Creative Landscaping Bhd on 1st July 2020. The contract requires Creative Landscaping to pay the contract price of RM30,000 in advance on 15th July 2020. Creative pays Eureka on 15th July 2020 and Eureka delivers the fixtures and fittings (with cost of RM19,000) on 31st July 2020.

Required:

i) Explain the 5-step of revenue recognition as outlined in MFRS 15 Revenue from Contract With Customers.

ii) Prepare the journal entry on 1st July 2020 for Eureka Design Bhd.

iii) Prepare the journal entry on 15th July 2020 for Eureka Design Bhd.

iv) Prepare the journal entry on 31st July 2020 for Eureka Design Bhd.

Solutions

Expert Solution

ekkarill92 answered 1 year ago
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