Question

Company Z was engaged by a large client in May Year 1. The parties contracted for monthly consulting services valued at $20,000 starting on September 1, Year 1. [This contract provides for monthly services through December 31, Year 2.] In Year 1, the client had paid for 80% of the services it had received from Company Z in that year.
$_________ Consulting Revenue in Year 1
$_________ Consulting AR at Dec.31, Year 1 [if any] …If none, so state
$_________ Consulting Unearned Revenue at Dec. 31, Year 1 [if any] …If none, so state

In Year 2, Company Z provided the consulting services for the large client as described above. Moreover, by the end of Year 2 the large client had paid Company Z for all services received under the terms of this 16-month contract. Later in Year 2, a smaller client engaged Company Z to perform $8,000 in monthly consulting services starting on July 1, Year 2. Company Z signed a two-year contract with this smaller client. In Year 2, this smaller client paid $60,000 to Company Z and Company Z provided services to the smaller client as required by the terms of the contract.
$_________ Consulting Revenue* in Year 2
$_________ Consulting AR* at Dec. 31, Year 2 [if any] …If none, so state
$_________ Consulting Un Rev* at Dec. 31, Year 2 [if any] …If none, so state
$_________ Cash received by Company Z in Year 2*.
*These answers are for both clients combined.

Answer 1

Consulting Revenue in Year 1	$    80,000.00
Consulting AR at Dec.31, Year 1	$    16,000.00
Consulting Unearned Revenue at Dec. 31, Year 1	$                   -
Consulting Revenue in Year 2	$ 288,000.00
Consulting AR at Dec. 31, Year 2	$                   -
Consulting Un Rev at Dec. 31, Year 2	$    12,000.00
Cash received by Company Z in Year 2	$ 316,000.00