TUTORIAL 2: REVENUE RECOGNITION QUESTION 1 SecureMax offers security-related products such as automatic fencing systems, alarm systems and closed-circuit televisions (CCTVs). The price list for a set of safety equipment, if it is sold separately, is as follows: SecureMax also offers a security equipment package at RM4,500, including installation services. The standalone charge for installation services is RM250. Below are contracts that SecureMax has signed during the current period ending June 30, 2021: 1. Contract with Mr. Ahmad On November 1,2020, SecureMax signed a contract to supply a security equipment package to Mr Ahmad. SecureMax has received a deposit of 20% of the contract amount on the contract date. The balance will be received after the installation works are fully completed. The terms of the contract stipulate that delivery and installation must be completed within 30 days from the contract date. The equipment was delivered on November 17,2020, and the right to receive payment for security equipment is upon the completion of the installation on November 20, 2020. 2. Contract with Jaringan Serantau On January 25, 2021, SecureMax signed a consignment contract with Jaringan Serantau to sell alarm systems. SecureMax agrees that the Jaringan Serantau will receive a 15% sales commission on the sales volume, and all selling expenses incurred will be reimbursed. On January 30, 2021, SecureMax delivered 20 alarm systems to the Jaringan Serantau. As of June 30,2021 , a statement from the Jaringan Serantau shows that 12 sets of alarm systems have been sold, and sales expenses of RM455 have been involved. Jaringan Serantau also remits the net sales amount to SecureMax. 3. Contract with Antara Homestay On April 22, 2021, SecureMax signed a contract with Antara Homestay to supply two alarm systems and three sets of CCTV and received a payment of 10% of the contract price. The balance will be received upon delivery. Under the contract terms, the order must be delivered within 45 days from the contract date. SecureMax has prepared the order, and is ready for delivery on May 1, 2021. However, since the renovation at the Antara Homestay premises has yet to be fully completed, delivery had to be postponed until early July 2021. SecureMax retains the order in its warehouse and separates it from other orders. Required: With reference to MFRS 15 Revenue from Contracts with Customers a) Explain the difference between the three above contracts. b) Prepare journal entries in SecureMax book of to record all transactions in the financial year ending June 30, 2021. c) Present the three above contracts in the Statement of Profit or Loss and Comprehensive Income of SecureMax for the year ended June 30, 2021