28. David is in the business of sharpening skates for college hockey teams. He signed a contract on August 1, 2019 for $28,000 with Bentley University ("Bentley") to sharpen the team's skates for the 2019-2020 hockey season, which is played from the months of September 2019 through March 2020. The contract states that Bentley will pay David a deposit of $8,000 on August 31, 2019, $8,000 on October 31, 2019, $4,000 on December 31, 2019 and the remaining $8,000 on March 31, 2020. David performed the services as contracted throughout the hockey season. What was the amount of revenue David should recognize for year-end December 31, 2019 on the Bentley contract? A. $0 B. $16,000 C. $20,000 D. $28,000 29. Katelyn's Catering, Inc. ("Katelyn") provides gourmet appetizers for corporate functions. For the month of January 2020, Katelyn had the following events occur in its business: 1) Katelyn incurred and paid salaries for their wait staff and chefs of $10,000; 2) Katelyn paid their food supplier $18,000 for food supplies used in the prior month; 3) Katelyn incurred but did not pay $800 in utilities; 4) Katelyn incurred $1,200 of repairs expenses on the delivery van, but will not pay until next month; 5) Katelyn was paid $12,000 from her largest corporate customer for a holiday party they catered in the prior month. What are the total amount of expenses that Katelyn will show on their income statement for the month of January 2020? A. $0 B. $12,000 C. $18,000 D. $30,000 30. On May 1, 2019, Luke paid LinkedIn $1,200 for his 2-year sub tion for online professional networking. The subscription starts immediately. What amount of revenue should LinkedIn record for the years of 2019 and 2020? A. Year 2019 = $1,200; Year 2020 = $0 B. Year 2019 = $600, Year 2020 = $600 C. Year 2019 = $400; Year 2020 = $600 %3D D. The answer cannot be determined based on the information given 8. 12
28. David is in the business of sharpening skates for college hockey teams. He signed a contract on August 1, 2019 for $28,000 with Bentley University ("Bentley") to sharpen the team's skates for the 2019-2020 hockey season, which is played from the months of September 2019 through March 2020. The contract states that Bentley will pay David a deposit of $8,000 on August 31, 2019, $8,000 on October 31, 2019, $4,000 on December 31, 2019 and the remaining $8,000 on March 31, 2020. David performed the services as contracted throughout the hockey season. What was the amount of revenue David should recognize for year-end December 31, 2019 on the Bentley contract? A. $0 B. $16,000 C. $20,000 D. $28,000 29. Katelyn's Catering, Inc. ("Katelyn") provides gourmet appetizers for corporate functions. For the month of January 2020, Katelyn had the following events occur in its business: 1) Katelyn incurred and paid salaries for their wait staff and chefs of $10,000; 2) Katelyn paid their food supplier $18,000 for food supplies used in the prior month; 3) Katelyn incurred but did not pay $800 in utilities; 4) Katelyn incurred $1,200 of repairs expenses on the delivery van, but will not pay until next month; 5) Katelyn was paid $12,000 from her largest corporate customer for a holiday party they catered in the prior month. What are the total amount of expenses that Katelyn will show on their income statement for the month of January 2020? A. $0 B. $12,000 C. $18,000 D. $30,000 30. On May 1, 2019, Luke paid LinkedIn $1,200 for his 2-year sub tion for online professional networking. The subscription starts immediately. What amount of revenue should LinkedIn record for the years of 2019 and 2020? A. Year 2019 = $1,200; Year 2020 = $0 B. Year 2019 = $600, Year 2020 = $600 C. Year 2019 = $400; Year 2020 = $600 %3D D. The answer cannot be determined based on the information given 8. 12
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:28. David is in the business of sharpening skates for college hockey teams. He signed a contract on
August 1, 2019 for $28,000 with Bentley University ("Bentley") to sharpen the team's skates for the
2019-2020 hockey season, which is played from the months of September 2019 through March 2020.
The contract states that Bentley will pay David a deposit of $8,000 on August 31, 2019, $8,000 on
October 31, 2019, $4,000 on December 31, 2019 and the remaining $8,000 on March 31, 2020. David
performed the services as contracted throughout the hockey season. What was the amount of revenue
David should recognize for year-end December 31, 2019 on the Bentley contract?
A. $0
B. $16,000
C. $20,000
D. $28,000
29. Katelyn's Catering, Inc. ("Katelyn") provides gourmet appetizers for corporate functions. For the
month of January 2020, Katelyn had the following events occur in its business: 1) Katelyn incurred and
paid salaries for their wait staff and chefs of $10,000; 2) Katelyn paid their food supplier $18,000 for
food supplies used in the prior month; 3) Katelyn incurred but did not pay $800 in utilities; 4) Katelyn
incurred $1,200 of repairs expenses on the delivery van, but will not pay until next month; 5) Katelyn
was paid $12,000 from her largest corporate customer for a holiday party they catered in the prior
month. What are the total amount of expenses that Katelyn will show on their income statement for
the month of January 2020?
A. $0
B. $12,000
C. $18,000
D. $30,000
30. On May 1, 2019, Luke paid LinkedIn $1,200 for his 2-year sub
tion for online professional
networking. The subscription starts immediately. What amount of revenue should LinkedIn record for
the years of 2019 and 2020?
A. Year 2019 = $1,200; Year 2020 =
$0
B. Year 2019 = $600, Year 2020 = $600
C. Year 2019 = $400; Year 2020 = $600
%3D
D. The answer cannot be determined based on the information given
8.
12
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