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THE FOLLOWING SITUATIONS ARE INDEPENDENT 1 - Abdullah Roofing installation completes a $ 4 , 0 0 0 contract, starting work on june 1 6
THE FOLLOWING SITUATIONS ARE INDEPENDENT
Abdullah Roofing installation completes a $ contract, starting work on june and completing the work on july The home builder pays them $ in advance on june $ on july and the balance $ when the home is sold in September.
An interior designer signs a contract in December to provide design services to a home builder, related to decorating a new show home. The contract is valued at $ and the designer receives a down payment upon signing the contract. All design work is done during January On February the show home opens to the public and the home designer pays the balance remaining on the contract
A lawyer has a meeting with a new client on April and agrees to represent her in a legal case. The fee negotiated is to be based on the number of hours the lawyer spends on the case. At the end of the meeting, the client pays the lawyer $ as a retainer The case involves research and negotiations that take place in May. On June the lawyer invoices the client for $ and the client pays the balance due $ in two equal instalments on June and July
On January an insurance company receives $ for a one year insurance policy that will expire on December
State which months is the revenue recognized, calculate how much money is recognized in each month and explain why
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