1. On August 31, 2019, Montana Corporation signed a 4-year contract to provide services for Minefield Company at $30,000 per year. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2019. Using the accrual basis of accounting, when should Montana recognize revenue?
a. On the first day of each year when the cash is received
b. Equally throughout the year as services are provided
c. On the last day of each year after the services have been provided
d. Only at the end of the entire contract
2. On April 20, McLean Company provides lawn care services to Tazwell Corporation for $3,000 with terms 1/10, n/30. On April 28, Tazwell pays for half of the services provided, and on May 19 it pays for the other half. What is the total amount of cash McLean received?
a. $3,000
b. $2,700
c. $2,985
d. $2,970
3. Zenephia Corp. accepted a 9-month note receivable from a customer on October 1, 2019. If Zenephia has an accounting period which ends on December 31, 2019, when would it most likely recognize interest income from the note?
a. December 31, 2019, and June 30, 2020
b. October 1, 2019
c. December 31, 2019, only
d. June 30, 2020, only