Question

This fact pattern provides information needed to answer Q#10 through Q#16. On August 1, Year 1, Hoppy Company agreed to provide consulting service to a large client over a 24-month period. It was agreed that these services would be provided in equal monthly amounts starting on August 1, Year 1. These services were provided as agreed. The aggregate value of all services under this contract was $480,000. In Year 1, Hoppy received $110,000 from this large client. Also in Year 1, Hoppy contracted with a smaller client to provide $24,000 in consulting services during each month for 30 months starting on November 1, Year 1. These services were provided as agreed. The smaller client advanced (paid) Hoppy $30,000 when the contract was signed on November 1, Year 1. In Year 2, both clients received services as required by their contracts. The large client paid Hoppy $300,000 cash in Year 2. The smaller client paid Hoppy $230,000 in Year 2. Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All A 115 80 888 u 14 ** * 3 $ 4 % 5 & 7 8 E R. T Y U o D F H J к C V B N M.

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Answer 1

Answer the requirement as follows: Cash received in Year 1 = $110,000 (large client) + 30,000 (small client) = $140,000