In the course of your audit of Jurassic World Inc.'s December 31, 2021 liabilities the following schedule was presented to you by Jurassic World Inc.'s bookkeeper: Accounts payable P225,000 Estimated premiums liability ? Estimated warranties payable 320,750 Accrued salaries 240,400 Deferred tax liability ? Notes payable, 20% due 4/1/22 Serial bonds payable, 10% Total ? Audit notes: Continuation in the photos* Assuming that the premuims are considered as a separate performance obligation under PFRS 15 (each t shirt has a stand alone sales price at 100 each), what is the correct unearned income as of December 31, 2021?
In the course of your audit of Jurassic World Inc.'s December 31, 2021 liabilities the following schedule was presented to you by Jurassic World Inc.'s bookkeeper: Accounts payable P225,000 Estimated premiums liability ? Estimated warranties payable 320,750 Accrued salaries 240,400 Deferred tax liability ? Notes payable, 20% due 4/1/22 Serial bonds payable, 10% Total ? Audit notes: Continuation in the photos* Assuming that the premuims are considered as a separate performance obligation under PFRS 15 (each t shirt has a stand alone sales price at 100 each), what is the correct unearned income as of December 31, 2021?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter4: Accounting For Retail Operations
Section: Chapter Questions
Problem 4.14E
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Question
In the course of your audit of Jurassic World Inc.'s December 31, 2021 liabilities the following schedule was presented to you by Jurassic World Inc.'s bookkeeper:
Accounts payable
P225,000
Estimated premiums liability
?
Estimated warranties payable
320,750
Accrued salaries
240,400
Deferred tax liability
?
Notes payable, 20% due 4/1/22
Serial bonds payable, 10%
Total
?
Audit notes:
Continuation in the photos*
Assuming that the premuims are considered as a separate performance obligation under PFRS 15 (each t shirt has a stand alone sales price at 100 each), what is the correct unearned income as of December 31, 2021?
A. 305,555
B. 95,486
C. 138,889
D. 444,444
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