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Howie, Price, and Liu operate an accounting firm. In March, their staff worked a total of 1,850 hours at an average billing rate of $320
Howie, Price, and Liu operate an accounting firm. In March, their staff worked a total of 1,850 hours at an average billing rate of $320 per hour. They sent bills to clients in the month of March that totalled $492,000. They expect to bill the balance of their time in April. The firm's salary costs total $177,600 each month. How much revenue should the firm recognize in the month of March assuming the firm uses the earnings approach to revenue recognition? How much salaries expense should it recognize?
Revenue: ?
Salaries expense: ?
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