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According to the revenue principle, revenues should be recognized when they are earned, which happens when the company perforUnder accrual basis accounting, expenses are recognized when incurred, which means the activity giving rise to the expense ha

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Answer 1

Transactions Amount

a

$ 28 - Here Apple iTune store provide goods or services i.e song files to customer i.e delivery of goods and services gets complete. Hence revenue of $ 28 to be recongnised.
b No revenue to be recognized here, since here comparison between prices of two stores for car[et installation are given and actual delivery og goods and services has not taken place.
c No revenue to be recognized here, since here Shaw communications is just scheduling to install digital cable and actual installations not taken place.
d

$ 258400 - Here Shaw Communications installed digital cable for which payment will be received after 30 days. Even if payment not received, revenue of $ 258400 to be recognized here since installation gets completed means delivery of goods and services done.

e No revenue to be recognized here. Since revenue had accounted at the time of digital cable installed. Currently Shaw Communications is receiving payment for services rendered.
f No Revenue to be recognized. Since here customer only purchase tickets from WestJet however services not provided by WestJet to customer. If Flight get cancelled then WestJet needs to refund customer. Hence no revenue to be recognized.

Answer 2

a $ 96000 - Here Gateway pays salary to service technician for his duty performed in the month of Jan 2017. Hence here activity giving rise to expenses occurred.
b No Expenses to be recognized. Since here Tumboldt Construction Co pay rent for the month of Feb to April 2017 in the month of January which is prepaid in nature.
c $ 1300 - Here Mcgraw Hill education use $ 1300 worth of electricity and gas in January to perform there task. Here company is utilizing the electricity which give rise to expenses Occurred. Actual payment is not relevent here.
d $ 1800 - Since Pooler company paying for service provided by consulting group for the month of January 2017. Here Pooler company is receiving service which activity gives rise to occurring of expenses.
e $ 5600 - In this case, Campus bookstore received consulting services for which payment is due withing thirty days of consultation. However activity of receiving service give rise to occurring of expenses. Here payment of service is irrelevent.
f $ 340 - Here Schergevitch repaired its delivery Van. By description we can say that delivery van is vital part of business. Hence expenses incurred for repairing it should be expenses out.

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