Trampoline Zone Inc started a business on August 1, 2018. You have been hired to be the accounting controller for the company. Since the company is new they don't know when to recognize revenue. The company is a private company that is owned equally by Sarah, Kam, Tim, and Jasdeep.

Trampoline Zone Inc is open Tuesdays to Sundays from 10 am to 7 pm. Customers come in and use the trampolines on a first come first serve basis and pay $ 20 per hour. Customers pay cash or use their debit or their credit cards and they have to sign a waiver that protects the company from being sued in case anyone hurts themselves on the trampolines On September 4 the company signed an agreement with Orange Inc which allows the companies, 20 employees, to come and use the trampolines once a month over the next 6 months On September 15 the Orange company paid S2, 100 to Trampoline Zone Inc . The employees will start using the trampolines during the month of October

Part A ( 13 marks )

For the two different revenue situations above determine when the revenue should be recognized,

list the 3 criteria required to be able to recognize the revenue and a fact from the case that supports that the criteria have been met. Provide your recommendation of when the revenue should be recognized.

Revenue situation and when it should be recognized_____________.

Criteria Support

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