Nibble’s Cookies uses the accrual method of accounting and properly records transactions on the date they occur. Descriptions of customer transactions follows:
a. Received $4,800 cash from customer for six months of service beginning January 1, 2012.
b. Catered event for customer on January 28. Customer paid Nibble’s invoice of $800 on February 10.
c. Scheduled catering event to be held June 3. Customer paid Nibble’s a $750 deposit on February 25.
d. Catered customer’s wedding on February 3. Customer paid Nibble’s a $600 deposit on January 15 and the balance due of $1,500 on February 3.
e. The company provided catering to a local church’s annual celebration service on February 15.
The church paid the $900 fee to Nibble’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 $260. The shelter paid Nibble’s $1,040 on February 25 for January and February’s events.
g. On December 1, 2011, Nibble’s entered into an annual service contract with an oil company to cater the customer’s monthly staff events. The contract total amount was $8,000, but Nibble’s offered a 1% discount since the customer paid the entire year in advance at the signing of the contract. The first event was held in December of last year.
h. Nibble’s signed contract for $1,600 on February 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 February, 2012 for Nibble’s Cookies for each transaction.