LMZ Computer Systems Inc LMZ's 2018 Sales of Maintenance Agreements Is Set Out Below

question 16

Essay

LMZ Computer Systems Inc.maintains office equipment under contract.The contracts are for labour only;customers must reimburse LMZ for parts.LMZ's rate schedule follows:
$$\begin{array} { | l | l | l | l | } \hline & \text { One year } & \text { Two years } & \text { Three years } \\\hline \text { Photocopies } & \$ 220 & 400 & 620 \\\hline \text { Fax machine } & \$ 175 & 340 & 440 \\\hline\end{array}$$
LMZ's 2018 sales of maintenance agreements is set out below:
$$\begin{array} { | l | l | l | l | } \hline & \text { One year } & \text { Two years } & \text { Three years } \\\hline \text { Photocopies } & 20 & 12 & 30 \\\hline \text { Fax machine } & 24 & 20 & 30 \\\hline\end{array}$$
Required:
Assuming that sales occurred evenly through the year:
a.What amount of revenue will LMZ recognize for the year ended December 31,2018?
b.What amount of deferred revenue will LMZ report as a current liability on December 31,2018?
c.What amount of deferred revenue will LMZ report as a non-current liability on December 31,2018?

Identify the importance of renewable energy sources like windmills and solar panels in addressing environmental challenges.

Grasp the implications of greenhouse gases and the greenhouse effect on global warming.

Comprehend public perceptions and attitudes towards environmental issues and the role of government legislation.

Appreciate the concept of social, environmental, and market costs associated with fuel consumption and other environmental issues.

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Definitions:

Audit

A systematic examination of books, accounts, documents, and vouchers of an organization to ascertain how far the financial statements present a true and fair view.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity.