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. Required: The following transactions occurred in September. For each of the transactions, if revenue is to be recognized in September, indicate the amount Transaction a A customer pays $19 cash for 19 song files from Apple's iTunes store Answer from Apple's standpoint b The Home Depot provides a carpet installation for $2,900 cash. A comparable installation by other companies costs $3,900 Shaw Communications is scheduled to install digital cable at 1,450 homes during the month of c September. The installation charge is $118 per home. The terms require payment within 30 days of installation. Answer from Shaw's standpoint d. Shaw completes the installations described in (c) Answer from Shaw's standpoint Shaw receives payment from customers for the installations described in (c) Answer from Shaw's standpoint e 1 A customer purchases a ticket from WestJet in September for $590 cash to travel in December. Answer from WestJet's standpoint. Amount

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Ww.211.

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.
Required:
The following transactions occurred in September. For each of the transactions, if revenue is to be recognized in September, indicate
the amount.
Transaction
a A customer pays $19 cash for 19 song files from Apple's iTunes store Answer from Apple's standpoint
The Home Depot provides a carpet installation for $2,900 cash. A comparable installation by other
companies costs $3,900
b
Shaw Communications is scheduled to install digital cable at 1,450 homes during the month of
c September. The installation charge is $118 per home. The terms require payment within 30 days of
installation, Answer from Shaw's standpoint
d. Shaw completes the installations described in (c) Answer from Shaw's standpoint
Shaw receives payment from customers for the installations described in (c) Answer from Shaw's
standpoint
1.
A customer purchases a ticket from WestJet in September for $590 cash to travel in December. Answer
from WestJet's standpoint
e
Amount
Transcribed Image Text: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. Required: The following transactions occurred in September. For each of the transactions, if revenue is to be recognized in September, indicate the amount. Transaction a A customer pays $19 cash for 19 song files from Apple's iTunes store Answer from Apple's standpoint The Home Depot provides a carpet installation for $2,900 cash. A comparable installation by other companies costs $3,900 b Shaw Communications is scheduled to install digital cable at 1,450 homes during the month of c September. The installation charge is $118 per home. The terms require payment within 30 days of installation, Answer from Shaw's standpoint d. Shaw completes the installations described in (c) Answer from Shaw's standpoint Shaw receives payment from customers for the installations described in (c) Answer from Shaw's standpoint 1. A customer purchases a ticket from WestJet in September for $590 cash to travel in December. Answer from WestJet's standpoint e Amount
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Revenue Recognition
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education