Consider the following: Jan1: Mason purchases gasoline for $200 on account Jan7: Mason advertises lawn mowing serviced for $100 per lawn Jan9: Mason signs up 8 customers who pay a total of $800 cash. Jan12: Mason mows the lawns of the 8 customers and all gasoline purchased on Jan1 is used. Jan13: Mason pays for the gasoline purchased on Jan1. Under the accrual basis accounting, what is the appropriate day to record the revenues related to lawn services? A. Jan 7 B. Jan 12 C. Jan 1 D. Jan 9

Consider the following: Jan1: Mason purchases gasoline for $200 on account Jan7: Mason advertises lawn mowing serviced for $100 per lawn Jan9: Mason signs up 8 customers who pay a total of $800 cash. Jan12: Mason mows the lawns of the 8 customers and all gasoline purchased on Jan1 is used. Jan13: Mason pays for the gasoline purchased on Jan1. Under the accrual basis accounting, what is the appropriate day to record the revenues related to lawn services? A. Jan 7 B. Jan 12 C. Jan 1 D. Jan 9

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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