E3- Identifying Accrual Basis Revenues According to the revenue principle, revenues should be recognized when they are earned, which happens when the company performs acts promised to the customer. For most businesses, LO3-1, LO3-2 The Income Statement CHAPTER 3 143 Check Figure [Part (b)]: Revenue earned= $2,000 this condition is met at the point of delivery of goods or services. Assume that the following transactions occurred in September 2017: a. A customer pays $10 cash for ten song files from Apple's iTunes store. Answer from Apple's standpoint. b. The Home Depot provides a carpet installation for $2,000 cash. A comparable installation by other companies costs $3,000. e. Shaw Communications is scheduled to install digital cable at 1,000 homes during the month of September. The installation charge is $100 per home. The terms require payment within thirty days of installation. Answer from Slow's standpoint. d. Shaw completes the installations described in (c). Answer from Shaw's standpoint. e. Shaw receives payment from customers for the installations described in (e). Answer from Shaw's standpoint. f. A customer purchases a ticket from WestJet in September for $500 cash to travel in December. Answer from WestJet's standpoint. Required: For each of the transactions, if revenue is to be recognized in September, indicate the amount, If revenue is not to be recognized in September, explain why.