Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. seng huan berhad sells a furniture set to a custom

Seng Huan Berhad sells a furniture set to a customer for RM6,000 on 30 November...

80.2K

Verified Solution

Question

Accounting

  1. Seng Huan Berhad sells a furniture set to a customer for RM6,000 on 30 November 2020. Upon the request of the customer whose house is under renovation, Seng Huan holds the furniture set until 1 February 2021, when it is delivered to customers house, which is now renovated.
  2. Hitachee Berhad enters into a contract with a customer to sell a television set with 2 years assurance warranty for RM5,000 on 1 May 2020. The customer pay another RM2,000 to buy a 3-year service warranty to cover years 3, 4 and 5.
  3. Teguh Berhad enters into a contract to deliver Machine X and Machine Y to a customer for RM200,000. The contract requires Machine X to be delivered first. Customer is given 3 months credit period and is payable upon the delivery of the machine. Teguh Berhad has identified two performance obligations and allocated RM80,000 to Machine X and RM120,000 to Machine Y. Machine X was delivered on 1 November 2020 and Machine Y was delivered on 1 December 2020.

Required:

  1. Discuss the accounting treatment of revenue recognition for each of the situation.
  2. Prepare the related journal entries for each of the situation. Assume reporting period in each cases is 31 December 2020.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Internal ControlCase1True Aussie Co. is a manufacturing company located in Melbourne.The company has...Internal ControlCase1True...

Psychology
1.2K views

What are models of psychological entitlement?

Biology
1.2K views

Approximately how many species have been identified here on Earth so far? A. About 1,7...

Biology
1.2K views

4 Upon examining a sample consisting of 100 cells you find the following distribution of...

Basic Math
1.2K views

What is the value of x in this equation A B 2x 4 2 4...

Basic Math
1.2K views

State the domain range for each of the following relations and if it is a...

Calculus
1.2K views

A flat metal plate is mounted on a coordinate plane. The temperature of the plate,...

Calculus
1.2K views

Which of the following are indeterminate forms Select all that apply 1 01 0 0...

Accounting
1.2K views

1. Please check and fill the box where answers needed thanks. The Little...

Accounting
1.2K views

Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in...

Finance
1.2K views

Alternative Dividend Policies Boehm Corporation has had stable earnings growth of 10% a year for...

Accounting
1.2K views

On 1 July 2021, your company acquired a machine for $50,000 and decided to depreciate...