Question

Print 1. Momentous Occasions is a photography business that shoots videos at college parties. The freshman class pays $1,000 in advance on March 3 to guarantee services for its party to be held on April 2. The sophomore class promises a of $2,800 for filming its formal dance and actually pays cash of 54,100 on February 28 at the dance. Read the requirements (1) The recognition a. Considering the $1,000 paid by the freshman class, the revenue was recognized (2) occur on the same date cash was recelved. (3) The recognition b. Considering the $4,100 paid by the sophomore class, the revenue was recognized (4) occur on the same date cash was received. 1: Requirements Answer the following questions about the correct way to account for revenue under the accrual basis: a. Considering the $1,000 paid by the freshman class, on what date was revenue recognized? Did the recognition occur on the same date cash was received? b. Considering the $4,100 paid by the sophomore class, on what date was revenue recognized? Did the recognition occur on the same date cash was received? O on December 31. O on December 31. (1) O O on February 28. O on March 3. O on April 2. (2) O O did O did not (3) O O on February 28. O on March 3. O on April 2 (4) O O did O did not 2. Consider the facts presented in the following table for Tropical View. Click the icon to view the table.) Complete the table by filling in the missing values. Situation Situation Situation Situation A B C D $ 1,400 $ 1,000 $ 200 $ 700 1,800 Beginning Prepaid Rent Payments for Prepaid Rent during the year Total amount to account for 700 2,100 800 1,600 700 600 Subtract: Ending Prepaid Rent Rent Expense $ 900 $ 1,900 $ 1,000

Answer 1

1.

a. Considering the $1,000 paid by the freshman class, the revenue was recognized on April 2. The recognition did not occur on the same date cash was received.

b. Considering the $4,100 paid by the sophomore class, the revenue was recognized on February 28. The recognition did occur on the same date cash was received.

2.

	Situation	Situation	Situation	Situation
	A	B	C	D
Beginning prepaid rent	1400	1000	200	700
Payments for prepaid rent during the year	700	600	1800	900
Total amount to account for	2100	1600	2000	1600
Subtract: Ending prepaid rent	800	700	100	600
Rent expense	1300	900	1900	1000