Question
Consulting Company had the following transactions in October. The companyhas a monthly accountingperiod and uses the ACCRUAL method. Transaction#1Company received$40,000in cash for a5-month consulting contract.
Consulting Company had the following transactions in October. The companyhas a monthly accountingperiod and uses the ACCRUAL method.
- Transaction#1Company received$40,000in cash for a5-month consulting contract. The services will be provided evenly, beginning in October.
- Transaction #2 Company provided $112,000 of consulting services on credit.
- Transaction #3 Company collected $60,000 of cash on the consulting services provided in transaction #2.
What does the company report as revenue for the month of October?
| A. | $100,000 | |
| B. | $152,000 | |
| C. | $120,000 | |
| D. | $112,000 | |
| E. | $180,000 | |
| F. | $68,000 | |
| G. | $8,000 |
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
0130674842, 978-0130674845
