Joyful Occasions is a photography business that shoots videos at college parties. The freshman class pays ($2,000)
Question:
Joyful Occasions is a photography business that shoots videos at college parties. The freshman class pays \($2,000\) in advance on February 3 to guarantee services for its party to be held on May 2. The sophomore class promises a minimum of \($4,800\) for filming its formal dance and actually pays cash of \($6,100\) on April 28 at the dance.
Answer the following questions about the correct way to account for revenue under the accrual basis:
a. Considering the \($2,000\) paid by the freshman class, on what date was revenue recognized? Did the recognition occur on the same date cash was received?
b. Considering the \($6,100\) paid by the sophomore class, on what date was revenue recognized? Did the recognition occur on the same date cash was received?
Step by Step Answer:
Horngrens Accounting The Financial Chapters
ISBN: 9780137884858
14th Edition
Authors: Brenda Mattison, Tracie Miller-Nobles