Need help with mainly parts b and c. For part A, im guessing that the revenue would be recognized over the period of the waterparks
Need help with mainly parts b and c.
For part A, im guessing that the revenue would be recognized over the period of the waterparks busy season (June-September) since its a seasonal business and that's when they will earn a majority of their revenue. could someone help me with the codification for seasonal businesses?
QUESTION
Stop and think. In this example, youll be asked to stop and think about an issue, then to search the Codification for applicable guidance.
a. Stop and think. Your company sells seasons passes to a waterpark that it owns. The passes are good from June 1 to September 30 of a given year. The company must determine the appropriate pattern of recognition for recording this revenue. What does your instinct tell you?
b. Now, perform research within the Codification to find guidance on this issue. How does the authoritative guidance describe this issue?
c. Finally, consider: Was your instinct consistent with the guidance for this issue? How did this instinct help you evaluate the guidance you found?
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