Answer:
a. Considering the $1,000 paid by the freshman class,
Revenue earned on April 2
Did the earnings occur on the same date the cash was received No
b. Considering the $4,100 paid by the sophomore class,
Revenue earned on April 2
Did the earnings occur on the same date the cash was received No
Explanation:
a. Considering the $1,000 paid by the freshman class, on what date was revenue earned? Did the earnings occur on the same date the cash was received?
Revenue According to IFRS 15 is earned when earnings occur on the same date the cash was received when Momentous Occasions (the entity) transferres goods or services to the customer ( freshman class)
Thus $1,000 paid by the freshman class on March 3 is a Deferred Revenue. Earnings did not occur on the same date the cash was received.
Revenue occured when Momentous Occasions (the entity) transferred goods or services to freashman class on April 2
b. Considering the $4,100 paid by the sophomore class, on what date was the revenue earned? Did the earnings occur on the same date cash received?
Revenue According to IFRS 15 is earned when earnings occur on the same date the cash was received when Momentous Occasions (the entity) transferres goods or services to the customer ( freshman class)
Revenue occured when Momentous Occasions (the entity) transferred goods or services to freashman class on April 2
The $4,100 paid by the sophomore class on February 28 is payment for services rendered by Momentous Occasions on party held on April 2.
Thus Earnings did not occur on the same date the cash was received.
