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For a 2 year project, you receive advance full payment of $45,000 at the beginning. Revenue will be billed equally in both years (at end
For a 2 year project, you receive advance full payment of $45,000 at the beginning. Revenue will be billed equally in both years (at end of year) as the work/cost is also divided equally in both years. You pay your supplier $33,000 in year 1 for materials and supplies to be delivered to you for the full project. Based on the information above, answer the following questions. Assume that Gabbins Company uses Cash basis of Accounting. What is the revenue recorded in year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Cash Basis of Accounting, what is the expense of year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Accrual Basis of Accounting, what is the revenue of year 1? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000) Answer: Using Accrual Basis of Accounting, what is the expense of year 2? (Number Format: Only provide numbers, no comma or unit or $ required. Example: 1000)
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