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Case Company received $18,000 on May 1 from a client for services from June 1, Year1 through May 31, Year2 (a 12-month contract). Case will
Case Company received $18,000 on May 1 from a client for services from June 1, Year1 through May 31, Year2 (a 12-month contract). Case will provide the services evenly over the contract period.
Assuming Case prepares annual financial statements, what will be the amount of revenue from this contract on the income statement for the year ended December 31, Year1?
| a. | $7,500 | |
| b. | $9,000 | |
| c. | $18,000 | |
| d. | $12,000 | |
| e. | $10,500 |
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