According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required: For each of the transactions, if revenue is to be recognized in September, Indicate the amount. Activity a. A customer paid for and downloaded song files from Apple's iTunes store for 55 cash. Answer from Apple's standpoint. b. Best Flooring provided a carpet installation for $2,900 cash. A comparable installation from other companies costs $3.000. c. Span Cable is scheduled to install digital cable at 600 Austin area homes next week. The installation charge is $120 per home. The terms require payment within 30 days of installation. Answer from Span Cable's standpoint. d. Span Cable completed the installations described in (c). Answer from Span Cable's standpoint. e. Span Cable received payment from customers for the installations described in (c) Answer from Span Cable's standpoint. f. A customer purchased a ticket from QuickAir in September for $670 cash to travel in December. Answer from QuickAir's standpoint. Amount

According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required: For each of the transactions, if revenue is to be recognized in September, Indicate the amount. Activity a. A customer paid for and downloaded song files from Apple's iTunes store for 55 cash. Answer from Apple's standpoint. b. Best Flooring provided a carpet installation for $2,900 cash. A comparable installation from other companies costs $3.000. c. Span Cable is scheduled to install digital cable at 600 Austin area homes next week. The installation charge is $120 per home. The terms require payment within 30 days of installation. Answer from Span Cable's standpoint. d. Span Cable completed the installations described in (c). Answer from Span Cable's standpoint. e. Span Cable received payment from customers for the installations described in (c) Answer from Span Cable's standpoint. f. A customer purchased a ticket from QuickAir in September for $670 cash to travel in December. Answer from QuickAir's standpoint. Amount

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 1MP

See similar textbooks

Related questions

Q: iven a bill, and the customer mails in a cheque for payment on December 5th. he dress shop receives…

A: Under the accrual basis of accounting, revenues and expenses are recognized in the period in which…

Q: Question involving Revenue Recognition: How much revenue should be recognized by the following…

A: Revenue Recognition: Revenues are recognized when they are earned, typically when goods are…

Q: According to the revenue recognition principle, revenues should be recognized when they areearned,…

Q: When Lowes Home Improvements sells a new $223 air compressor to a customer, the sale is subDject to…

A: 223

Q: If you ran the report Transaction List by Vendor, for all dates, what dollar amount will appear…

A: 250 dollar amount will appear under the vendor Today’s CPA

Q: Johnson Hardware Supply, Inc., sells on account. When a customer account becomes four months old,…

A: Interest revenue=Sales revenue×9%×60360=$24,000×9%×60360=$360

Q: C. In June, Nikea Inc. received the $10,000 payment from XYZ Which of Nikea's accounts are affected…

A: Given transaction is: Nikea Inc. received the $10,000 payment from XYZ. Cash (Assets) - Increase XYZ…

Q: Luna Company accepted credit cards in payment for $7,100 of services performed during July Year 1.…

A: A journal entry is a record of a business transaction in double- entry secretary. It's the first…

Q: The following are brief descriptions of two companies in different lines of business. 1. Company A…

A: Revenue should be recognise as and when performace obligations satisfies not when cash received.…

Q: In providing accounting services to small businesses, you encounter the following situations. 1.…

A: Journalizing is one of the most important and basic processes in the accounting cycle. In this…

Q: According to the revenue recognition principle, revenues should be recognized when they areearned,…

A: Revenue recognition principle is an integral part of accrual accounting which requires the revenue…

Q: When Lowes Home Improvements sells a new $223 air compressor to a customer, the sale is subject to…

A: Interest expense is a non-operating expense shown on the income statement. It represents interest…

Q: John Grey owns Grey's Snow Plowing. In October, Grey's collects $12,000 cash for 6 commercial…

A: Unearned revenue is that revenue which is received in advance but revenue will be earned later on.…

Q: Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of…

A: Introduction:- If the customer made payment within discount period, he is eligible for sales…

Q: An accountant recommends a local computer company to a client that is trying to upgrade its…

A: Commission is a percentage fees charged for professional services in connection with executing a…

Q: Selam Eatery operates a catering service specializing in business luncheons for large corporations.…

A: Given, Selam Eatery operates a catering service specializing in business luncheons for large…

Q: Safe Home provides house-sitting for people while they are away on vacation. Some of its customers…

A: Cash basis method - As per the cash basis method of accounting the revenue and expenses are…

Q: On 9/1, Bugsy Pest Control receives $12,000 in advance to provide provide pest control services to a…

A: Receipt of advance increases unearned revenue and increases cash on 9/1.

Q: Joanne is part of the accounts payable team at a local furniture store, responsible for recording…

A: Lets understand the basics.Journal entry is required to record event and transaction that occur…

Q: Every March, Buddie, who owns and operates a small retail shop, takes a large box of receipts and…

A: A control system is a system that is used to monitor and regulate the behavior of a process or…

Q: According to your studying of the Conceptual Framework, Discuss the following: 1. Selane Eatery…

A: Solution: Introduction: Conceptual framework is a logical and integrated system of co-related…

Q: Selane Eatery operates a catering service specializing in business luncheons for large corporations.…

A: Revenue recognition principle states that the revenue must be recognized when it is earned,…

Q: In November, Year 2, your accounting firm placed a one-time website advertisement with Today's CPA.…

A: At the point when you begin with charge card handling with us, you will not have to stress over…

Q: In providing accounting services to small businesses, you encounter the following situations. 1…

A: Journal entry - it is an act of maintaining or creating the records of any transactions, whether…

Q: Ainsley Emporium sells gift cards to customers. In December, customers purchased $10,000 of gift…

A: Journal entries refer to the recording of transaction in an appropriate way. With the help of…

Q: On June 30, a printing shop provides $1000 of services to a customer to custom print restaurant…

A: As per revenue recognition principle, revenue is recognized when performance obligation is…

Question

According to the revenue recognition principle, revenues should be recognized when or as the company performs acts
promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The
following transactions occurred in September:
Required:
For each of the transactions, if revenue is to be recognized in September, Indicate the amount.
Activity
a. A customer paid for and downloaded song files from Apple's iTunes store for $5
cash. Answer from Apple's standpoint.
b. Best Flooring provided a carpet installation for $2,000 cash. A comparable
installation from other companies costs $3,000.
c. Span Cable is scheduled to install digital cable at 600 Austin area homes next
week. The installation charge is $120 per home. The terms require payment within
30 days of installation. Answer from Span Cable's standpoint.
d. Span Cable completed the installations described in (c). Answer from Span
Cable's standpoint.
e. Span Cable received payment from customers for the installations described in
(0) Answer from Span Cable's standpoint.
f. A customer purchased a ticket from QuickAir in September for $670 cash to travel
in December. Answer from QuickAir's standpoint.
Amount

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.

Similar questions

According to the revenue recognition principle, revenues should be recognized when or as the company performs acts promised to the customer. For many businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September: Required: For each of the transactions, if revenue is to be recognized in September, indicate the amount. (Enter your answers in dollars but not in millions.) Answer is complete but not entirely correct. Activity Amount a. Gillespie Enterprises Inc. issued $26 million in new common stock b. Cal State University received $20,000,000 cash for 80,000 five-game- season football tickets. None of the games have been played. c. Cal State played the first football game referred to in (b). d. Hall Construction Company signed a contract with a customer for the construction of a new $500,000 warehouse. At the signing, Hall received a check for $50,000 as a deposit to be applied against amounts earned during the first…
Conceptual Connection: For each situation, indicate when the company should recognize revenue on an accrual basis. a. A store sells a gift card in December which will be given as a Christmas present. The card is not redeemed until January.
Provided below is a list of several companies' revenue recognition policies. Revenue Recognition Policy A The performance obligation is satisfied with the passage of time. Interest is earned with the passage of time. Each period, income is accrued on loans even if customers have not yet paid the interest. B The performance obligation occurs when the customer takes the merchandise (for in-store sales) or when the goods are delivered (for online sales). The company estimates product returns and reports an allowance at time of sale. C The performance obligation is fulfilled when the customer takes the completed equipment. Revenues for financial or insurance services are recognized when the services are provided. D The performance obligation is satisfied as the company builds and completes projects for customers. Revenue is recognized for long-term construction contracts based on the percentage of completion. E The performance obligation occurs when the customer takes delivery of the…
Global Services Company had the following transactions during the month of August: a. Record the August revenue transactions for Global Services Company into the following revenue journal format: b. What is the total amount posted to the accounts receivable and fees earned accounts from the revenue journal for August? c. What is the August 31 balance of the Morgan Corp. customer account assuming a zero balance on August 1?
On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
On June 30, a printing shop provides $1000 of services to a customer to custom print restaurant menus. The customer is sent a bill on July 5 for the amount due. A check in the amount of $1000 is received from the customer on July 25. The printing shop follows GAAP and applies the revenue recognition principle. When is the $1000 sale recognized?
Tasks 8-9. Application. Prepare the journal entries of the transaction below and post them to the necessary ledger books. Write your answer on a separate sheet of paper. Olson Sala Company completed the following sales transactions during the month of June 2015. All credit sales have terms of 3/10, n/30 and all invoices are dated as at the transaction date. June 1 Olson Sala invested Php 52,000 of his funds in the business. 1 Sold merchandise on account to R. Bituin, Php 32,000. Invoice no. 377 Sold merchandise on account to A. Perdales, Php 54,000. Invoice no. 378 3 4 Sold merchandise for cash, Php 46,000. 7. Received payment from R. Bltuin less discounts. Received payment from A. Perdales less discounts. 9. Required: 1. Record the transactions in the general journal. 2. Post to the accounts receivable ledger. 3. Prepare a schedule of accounts receivable.
Johnson Hardware Supply, Inc., sells on account. When a customer account becomes four months old, Johnson Hardware Supply converts the account to a note receivable. During 2018, Johnson Hardware Supply completed these transactions: A (Click the icon to view the transactions.) Requirement 1. Record the transactions in Johnson Hardware Supply, Inc.'s journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the sales on account. Journal Entry Date Accounts Debit Credit Apr 29 More Info Record the receipt of the note. 29 Sold goods on account to Parkview Corp., $24,000. Ignore cost of goods sold. 1 Received a $24,000, 60-day, 9% note from Parkview Corp., in satisfaction of its past-due account receivable. 31 Collected the Parkview Corp., note at maturity. Use 360-day year for interest computation and round to the nearest dollar. Journal Entry Apr Date Accounts Debit Credit Sep Sep Oct Record the collection of the Parkview Corp. note. Print Done…
Which of the following is correct
Consider the following transactions of Johnson Software: Mar. 31 Apr. 6 Journalize the transactions for the company. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Recorded cash sales of $160,000, plus sales tax of 7% collected for the state of New Jersey. Sent March sales tax to the state. Mar. 31: Recorded cash sales of $160,000, plus sales tax of 7% collected for the state of New Jersey. (Prepare a single compound entry for this transaction.) Accounts and Explanation Date Mar. 31 Debit Credit
An accountant recommends a local computer company to a client that is trying to upgrade its computerized sales records. The client purchases $25,000 worth of equipment and sends a check to the accountant for 5 percent of the total sales. This is an example of aa. Commission.b. Contingent fee.c. Referral fee.d. Nonaudit fee.
In providing accounting services to small businesses, you encounter the following situations. Sunland Corporation rings up cash sales and sales taxes separately on its cash register. On April 10, the register totals are pre-tax sales of sales $6,100 plus GST of $305 and PST of $488. 2. Jennifer Corporation receives its annual property tax bill in the amount of $8,400 on May 31. (i) During the month of March, Ayayai Corporation's employees earned gross salaries of $60,000. Withholdings deducted from employee earnings related to these salaries were $3,254 for CPP, $948 for El, $7,820 for income taxes. (ii) Ayayai's employer portions were $3,254 for CPP and $1,327 for El for the month. 1. 3. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit…