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Rashid [163]
3 years ago
15

E3-18 Comparing cash and accrual basis accounting and applying the revenue recognition principle Momentous Occasions is a photog

raphy business that shoots videos at college parties. The freshman class pays $1,000 in advance on March 3 to guarantee services for its party to be held on April 2. The sophomore class promises a minimum of $2,800 for filming its formal dance and actually pays cash of $4,100 on February 28 at the dance. Answer the following questions about the correct way to account for revenue under the accrual basis:
a. Considering the $1,000 paid by the freshman class, on what date was revenue recognized? Diod the recognition occur on the same date cash was received?
b. Considering the $4,100 paid by the sophomore class, on what date was revenue recognized'? Did the recognition occur on the same date cash was received?
Business
1 answer:
dusya [7]3 years ago
4 0

Answer:

Momentous Occasions

a. Revenue of $1,000 is recognized on April 2, though the cash receipt is recorded on March 3 as deferred revenue.  This means that the recognition occurred on a separate date from when the cash was received.

b. Revenue of $4,100 will be recognized on the date the party is held and not on the February 28 date when the cash was received.  This means that the recognition occurred on a separate date from when the cash was received.

Explanation:

Momentous Occasions is required to recognize revenue on the date the service is performed and not when the cash is received in accordance with the accrual concept, unless it chooses to use the cash basis as a small business.

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Answer:

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In the context of evaluating service quality, _____ refers to the knowledge and courtesy of employees and their ability to conve
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8 0
3 years ago
. Tiger Mfg. owns a manufacturing facility that is currently sitting idle. The facility is located on a piece of land that origi
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Answer: $1,200,000

Explanation:

The firm should include $1,200,000 as the cost of the Manufacturing facility for a new project in it's analysis.

This is because $1,200,000 is the opportunity cost of not selling the facility. The old costs that were incurred for the land and the facility are to be considered sunk costs as they have already been incurred and the only relevant cost now is what the market will pay for the facility which is $1,200,000.

4 0
3 years ago
Freight car loadings over an 18-week period at a busy port are as follows: A- Determine a linear trend line for expected freight
padilas [110]
The linear equation that best fits the given data is
y = 19.19x + 213.53
after data processing

In week 20 and 21, the expected loading is
y = 19.19 (20) + 213.53 = 597.33
y = 19.19 (21) + 213. 53 = 616.52

The week when the load is 776 is
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Answer:

C. low-income countries characterized by limited industrialization and stagnant economies

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