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Zerox provides a bundled service offering to Celox. It charges Celox $55 000 for initial...

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Accounting

Zerox provides a bundled service offering to Celox. It charges Celox $55 000 for initial connection to its network and two ongoing services access to the network for 2 years and on-call troubleshooting advice for that period. Celox pays the $55 000 upfront, on 1 July 2020. Zerox determines that, if it were to charge a separate fee for each service if sold separately, the fee would be:

Connection fee $11 000

Access fee $22 000

Troubleshooting $33 000

Required

Prepare the journal entries to record this transaction for Zerox in accordance with AASB 118 for the year ended 30 June 2021. Show all workings.

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