10. Jim Company offers three payment plans on its 12-month contracts. Information on the three plans and the number of children enrolled in each plan for September 1, 2005 through August 31, 2006 contract year follows: Initial payment per Monthly fees per No. of Plan child child children #1 500 15 # 2 200 30 12 #3 50 6. 36 Jim received all the initial payments on September 1, 2005 and P3,240 of monthly fees during the period September 1 through December 31, 2005. In its December 31, 2005 balance sheet, what amount should Jim report as deferred revenue? a, 3,300 b. 4,380 c. 6,600 d. 9,900 (AICPA)
10. Jim Company offers three payment plans on its 12-month contracts. Information on the three plans and the number of children enrolled in each plan for September 1, 2005 through August 31, 2006 contract year follows: Initial payment per Monthly fees per No. of Plan child child children #1 500 15 # 2 200 30 12 #3 50 6. 36 Jim received all the initial payments on September 1, 2005 and P3,240 of monthly fees during the period September 1 through December 31, 2005. In its December 31, 2005 balance sheet, what amount should Jim report as deferred revenue? a, 3,300 b. 4,380 c. 6,600 d. 9,900 (AICPA)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:10. Jim Company offers three payment plans on its 12-month
contracts. Information on the three plans and the number of
children enrolled in each plan for September 1, 2005 through
August 31, 2006 contract year follows:
Monthly fees per
No. of
Initial payment per
child
child
children
Plan
#1
500
15
# 2
200
30
12
#3
50
6.
36
Jim received all the initial payments on September 1, 2005 and
P3,240 of monthly fees during the period September 1 through
December 31, 2005. In its December 31, 2005 balance sheet, what
amount should Jim report as deferred revenue?
a, 3,300
(AICPA)
b. 4,380
c. 6,600
d. 9,900
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