Crum’s Cookies uses the accrual method of accounting and properly records transactions on the date they occur. Descriptions of customer transactions follow:
a. Received $3,000 cash from customer for six months of service beginning April 1, 2012.
b. Catered event for customer on April 28. Customer paid Crum’s invoice of $600 on May 10.
c. Scheduled catering event to be held June 3. Customer paid Crum’s a $500 deposit on May 25.
d. Catered customer’s wedding on May 3. Customer paid Crum’s an $800 deposit on April 15 and the balance due of $1,000 on May 3.
e. The company provided catering to a local church’s annual celebration service on May 15. The church paid the $800 fee to Crum’s on the same day.
f. The company provides food to the local homeless shelter two Saturdays each month. The cost of each event to the shelter is $280. The shelter paid Crum $1,120 on May 25 for April and May’s events.
g. On April 1, Crum’s entered into an annual service contract with an oil company to cater the customer’s monthly staff events. The contract’s total amount was $4,000, but Crum’s offered a 2.5% discount since the customer paid the entire year in advance at the signing of the contract. The first event was held in April.
h. Crum’s signed contract for $1,000 on May 5 to cater X-treme sports events to be held June 15,
June 27, October 1, and November 15.
Requirement
1. Calculate the amount of revenue earned during May, 2012 for Crum’s Cookies for each transaction.