### Events for Henkle Decorating, Inc.#### March 3- **Event**: Henkle signs a contract to decorate Pat’s home for a price of $3,800.#### March 10- **Event**: Henkle purchases decorating supplies at a cost of $800.#### March 20- **Event**: Henkle receives $1,200 as a down payment from Pat.#### March 28- **Event**: Henkle decorates Pat’s home.#### April 1- **Event**: Henkle receives the final payment of $2,600 from Pat.### QuestionUnder accrual-basis accounting, when should Henkle record revenue for decorating services?#### Options- March 20- March 3- April 1- March 28### ExplanationIn accrual-basis accounting, revenue is recorded when it is earned, regardless of when cash is received. Considering the provided events, Henkle should record the revenue on March 28, the day the decorating service was performed.#### Answer- March 28

Under Accrual basis accounting, Henkle should record revenue for decorating services only when the…

Consider the following events for Henkle Decorating, Inc.: March 3 Henkle signs a contract to decorate Pat's home for a price of $3,800 March 10 Henkle purchases decorating supplies at a cost of $800 March 20 Henkle receives $1,200 as a down payment from Pat March 28 Henkle decorates Pat's home April 1 Henkle receives the final payment of $2,600 from Pat Under accrual-basis accounting, when should Henkle record revenue for decorating services? March 20 March 3 April 1 March 28

Consider the following events for Henkle Decorating, Inc.: March 3 Henkle signs a contract to decorate Pat's home for a price of $3,800 March 10 Henkle purchases decorating supplies at a cost of $800 March 20 Henkle receives $1,200 as a down payment from Pat March 28 Henkle decorates Pat's home April 1 Henkle receives the final payment of $2,600 from Pat Under accrual-basis accounting, when should Henkle record revenue for decorating services? March 20 March 3 April 1 March 28

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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