Sl No. | Amount | Reason | ||||||||||||
a. | 0 | Isssue of common stock has no effect on revenue.Common stock is an equity item. | ||||||||||||
b. | 0 | Since none of the game has been p[layed | ||||||||||||
c. | 5529000 | (27645000/5) | Revenue of one-game recognized since it is performed in September | |||||||||||
d | 0 | Since it is in the nature of advance, it is a liabliitiy | ||||||||||||
e | 0 | Since the subscription begins in the next FY, revenue to be recognized from next FY | ||||||||||||
f | 415 | Since the cell phone plan is for september month,revenue has to be recognized in september | ||||||||||||
Please answer and show detail 2. value: 1.00 points According to the revenue recognition principle, revenues...
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...
1) The following transactions are July activities of Bill’s Extreme Bowling, Inc., which operates several bowling centers. If revenue is to be recognized in July, indicate the amount. Activity Amount a. Bill’s collected $14,300 from customers for services related to games played in July. b. Bill’s billed a customer for $370 for a party held at the center on the last day of July. The bill is to be paid in August. c. The men’s and women’s bowling leagues gave...
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Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: a. A popular ski magazine company receives a total of $11,645 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $2,600 to...
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According to the revenue 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. points Required: The following transactions occurred in September 2017. For each of the transactions, if revenue is to be recognized in September, indicate the amount. Amount eBook Print Transaction Acustomer pays $28 cash for 28 song files from Apple's iTunes...
Revenues are normally recognized when the entity has transferred to the buyer the significant risks and rewards of ownership of the goods, it retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods, it is probable that future economic benefits will flow to the company, and the benefits from afnd costs associated with the transaction can be measured reliably. The amount recorded is the cash-equivalent sales price. Assume that the following events...
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