Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. Droscoe offers 1 hour-long kite flying lessons for $25 for the hour. Customer interested in this service must make a reservation and prepay for

3. Droscoe offers 1 hour-long kite flying lessons for $25 for the hour. Customer interested in this service must make a reservation and prepay for the service in advance. Customers who do not show up for the lesson are not refunded their money and are not able to rebook the lesson. As of December 31, 2009, Droscoe had accepted reservations and payments for 150 hours of lessons for the year 2010. During 2010, Droscoe accepted reservations and payments for an additional 950 hours of lessons, of which 850 were booked for the year 2010 and the remaining 100 were booked for the year 2011. There were 25 customers who did not show up for their hour-long lessons during 2010. The remainder of the customers showed up as planned. Using FSET, What amount will be reported in the 2010 year-end financial statements for the following related to these transactions:

i) Cash Received from Customers: $_______________

ii) Revenue: $_______________

iii) Unearned Revenue: $_______________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Loose Leaf For Financial Accounting Fundamentals

Authors: John Wild, Ken Shaw, Barbara Chiappetta

6th Edition

1260151980, 978-1260151985

More Books

Students also viewed these Accounting questions