For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting). a. On December 7, Oklahoma City Thunder sold a $106 ticket to a basketball game to be played in March. b. Tesla sold and delivered a $74,000 car on December 25. The customer will not pay until February. c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $26,000 due at the end of the contract. On December 31, 75% of the services have been completed. Situations a. Sale of a ticket to a basketball game b. Sale of a car on credit c. Contract to provide advisory services Revenue recognized in December
For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting). a. On December 7, Oklahoma City Thunder sold a $106 ticket to a basketball game to be played in March. b. Tesla sold and delivered a $74,000 car on December 25. The customer will not pay until February. c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $26,000 due at the end of the contract. On December 31, 75% of the services have been completed. Situations a. Sale of a ticket to a basketball game b. Sale of a car on credit c. Contract to provide advisory services Revenue recognized in December
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis
accounting).
a. On December 7, Oklahoma City Thunder sold a $106 ticket to a basketball game to be played in March.
b. Tesla sold and delivered a $74,000 car on December 25. The customer will not pay until February.
c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $26,000 due at the end of the
contract. On December 31, 75% of the services have been completed.
Situations
a. Sale of a ticket to a basketball game
b. Sale of a car on credit
c. Contract to provide advisory services
Revenue recognized in
December
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