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Fiesta28 [93]
3 years ago
5

Colbert operates a catering service on the accrual method. In November of year 1 Colbert received a payment of $9,000 for 18 mon

ths of catering services to be rendered from December 1st of year 1 through May 31st of year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
Business
1 answer:
Shalnov [3]3 years ago
6 0

Answer:

b) $500 is recognized in year 1 and $8,500 in year 2.

Explanation:

The calculation is shown below:

Since the payment is received for 18 months of $9,000

So for one month, the payment is

= $9,000 ÷ 18 months

= $500

This $500 should be recognized in year 1 and the remaining amount i.e

= $9,000 - $500

= $8,500

This $8,500 should be recognized in year 2

Hence, b option is correct

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The answer might be option no C

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4 years ago
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realizatio
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Answer:

$12,000

Explanation:

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4 years ago
Zoum Corporation had the following transactions during the year: Issued $250,000 of par value common stock for cash. Recorded an
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Answer:

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8 0
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Two fatal flaws can render a business model untenable from the beginning. These are:
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Answer:

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