Question

1. The marketing efforts were successful: 100 people, the maximum capacity, registered in November for the conference. They paid their $850 registration fee at the time they registered. The registration fee included the cost of the conference sessions, all meals except for one dinner not held at the conference hotel, and transportation to the off-site dinner.

a. When can revenue for the conference be recorded on your organization’s income statement?

b. How much revenue do you record at that point?

c. What is the effect on the financial statements (balance sheet and income statement) in November? In February?

Answer 1

As soon as the revenues are earned by any company, these are recorded in the books, and finally at the end of the year these are posted to the income statement of the organization under revenues head..As there were 100 people who registered and paid $850 as their registration fees, the total revenues will amount to $85000 (850×100).

The net effect of this would include increase in profit of the company.