Answer:
- $38,500
- $1,400
Step-by-step explanation:
1. According to the Accrual Principle of Accounting, revenue should only recognized when the goods or services for which it was paid for have been delivered. In other words, revenue should only be recognized when earned.
As of December 1, 20X1, Ginzel had only completed 7 of the 20 reports so the revenue recognized should be for the completed reports alone.
Total revenue for 20 reports = $110,000
Revenue for 7 reports = 7/ 20 * 110,000
= $38,500
2. The Accrual principle also applies to expenses and states that expenses should only be accounted for when incurred. As the $4,000 relates to all the reports, it should be apportioned evenly.
The costs of extraction and conversion of data for the year should therefore be;
= 7/20 * 4,000
= $1,400
-1.3 is farther from 0 because -1.3 is less than negative one, where as 4 fifths is more than negative one. -1.3 is farther.
