Question
Harbourline Tickets runs an online platform that sells tickets for concerts organised by independent promoters. The promoter sets the price, decides who performs, bears the risk of unsold seats, and is responsible for the event taking place. Harbourline collects the full ticket price from customers, keeps a 10% commission, and pays the rest to the promoter.
In June 2026 Harbourline sells tickets for one promoter's summer festival for $150,000 in cash. The amount due to the promoter is paid on July 10.
Required:
- Harbourline Revenue — the revenue Harbourline recognises from the June sales.
- Journal Entries — the June 30 summary entry for the ticket sales, and the July 10 payment to the promoter. Use Cash, Commission Revenue and Accounts Payable.
- Statement Impact — the effect of the June 30 entry.
Statements in this challenge
- Harbourline RevenueNumeric Answer
- Journal EntriesJournal Entry
- Statement ImpactStatement Impact
Scoring
- 40% Account naming / line matching
- 40% Amount correctness
- 20% Structure / section placement
IFRS 15 — Revenue from Contracts with Customers
Apply the five steps in order: identify the contract, identify the performance obligations, determine the transaction price, allocate it to the obligations, and recognise revenue as each is satisfied. Most errors come from skipping straight to the amount without first separating the obligations.
Common mistakes
- Recognising the full contract price on delivery when a distinct service obligation is still outstanding.
- Allocating the transaction price other than on relative stand-alone selling prices.
- Recognising revenue when cash is received rather than when control transfers.
Further readingIFRS 15: the five-step model