ZuoTi.Pro
Question

Zeke the Plumber follows the accrual accounting revenue recognition principle. Zeke performed services for a client...

Zeke the Plumber follows the accrual accounting revenue recognition principle. Zeke performed services for a client on July 10, notified the client that he did the job the next day July 11th. The customer mailed the check to Jerry on July 25. Jerry received the check next day (July 26). When should Jerry show that the revenue was earned?

A July 26

B July 25

C July 11

D July 10

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Revenue should be recognised on the day when service was rendered. Services are performed on July 10th. Revenue should be recognised on July 10th

July 10

Option D

0 0
Add a comment
Know the answer?
Add Answer to:
Zeke the Plumber follows the accrual accounting revenue recognition principle. Zeke performed services for a client...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • James's Tune-up Shop follows the revenue recognition principle. Jim finished repairing a car on July 31....

    James's Tune-up Shop follows the revenue recognition principle. Jim finished repairing a car on July 31. The customer picked up the cas on August 1 and mailed the payment to James on August 5. James received the check in the mail on August 6. What date should James show that the revenue was earned? Justify your answer.

  • Entity N follows the revenue recognition principle.   It services a vehicle on September 30. The customer...

    Entity N follows the revenue recognition principle.   It services a vehicle on September 30. The customer picks up the vehicle on October 1 and mails the payment to Entity N on October 7. Entity N receives the check in the mail on October 9.   When should Entity N show that the revenue was recognized?

  • 1) If a company is using accrual basis accounting, when should it record revenue? A) when...

    1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...

  • Did I do this right? Accrual Basis Cash Basis Use the accrual basis of accounting to...

    Did I do this right? Accrual Basis Cash Basis Use the accrual basis of accounting to journalize the transactions below: Use the cash basis of accounting to journalize the transactions below: I cr 10.15 Provided $1,000 of legal counsel Dr I cr 10.15 Provided $1,000 of legal counsel; billed client AIR Kegal fees earned Dr 1000 1000 legal fees earned Dr 1000 I cr I cr 11.15 Received payment of Oct 15 services Cash AIR 12.31 Received payment of Oct...

  • 1) Entity N follows the revenue recognition principle.   It services a vehicle on September 30. The...

    1) Entity N follows the revenue recognition principle.   It services a vehicle on September 30. The customer picks up the vehicle on October 1 and mails the payment to Entity N on October 7. Entity N receives the check in the mail on October 9.   When should Entity N show that the revenue was recognized? a) september 30th b) october 7th c) october 1st d) october 9th 2. Entity M signed a six-month note payable in the amount of $60,000...

  • According to the revenue recognition principle, revenues should be recognized when they are earned, which happens...

    According to the revenue recognition principle, revenues should be recognized when they are earned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transaotions occurred in September Required For each of the transactions, if revenue is to be recognized in September, indicate the amount. Amount Activity a. Gillespie Enterprises Inc. issued $25 million in new common stock Cal State University...

  • Please answer and show detail 2. value: 1.00 points According to the revenue recognition principle, revenues...

    Please answer and show detail 2. value: 1.00 points According to the revenue recognition principle, revenues should be recognized when they are earned which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required For each of the transactions, if revenue is to be recognized in September, indicate the amount. Activity Amount a. Gillespie Enterprises Inc. issued...

  • Please check answer Fang's Tune-Up Shop Ltd. uses the accrual basis of accounting. Fang services a...

    Please check answer Fang's Tune-Up Shop Ltd. uses the accrual basis of accounting. Fang services a car on May 31. The customer picks up the vehicle on June 1 and mails payment to Fang on June 5. Fang receives the cheque in the mail on June 6. When would Fang recognize the revenue as being earned? June May 31 June 5 June 6

  • EXERCISES 11. Revenue recognition. Neiman Marcus, a U.S. retailer, uses the accrual basis of accounting and...

    EXERCISES 11. Revenue recognition. Neiman Marcus, a U.S. retailer, uses the accrual basis of accounting and follows U.S. GAAP. It recognizes revenue at the time it sells merchandise. Indicate the amount of revenue (if any) the firm recognizes during the months of February, March, and April in each of the following hypothetical transactions, in which Neiman Marcus does the following: a. Collects $800 cash from a customer during March for a custom-made suit that the firm will make and deliver...

  • Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages...

    Unadjusted Financial Statements income Statement For the Year Ended December 31, 2017 Service revenue $70,600.00 Wages expense 44,300.00 Net income $26,300.00 Cole Designs Inc. Balance Sheet December 31, 2017 Assets Cash $5,000.00 Accounts receivable 32,600.00 Supplies 3,650.00 5 Prepaid insurance 4,000.00 6 Office equipment 11,000.00 Total assets $56,250.00 Liabilities Unearned revenue $9,500.00 Stockholders' Equity Common stock $12,000.00 12 Retained earnings 34,750.00 46,750.00 13 Total liabilities and stockholders'equity $56,250.00 Cole Designs Inc. Income Statement For the Year Ended December 31, 2017...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT