For each of the transactions, if revenue is to be recognized in September, indicate the amount. (Enter you in millions.) Activity Amount a. Gillespie Enterprises Inc. issued $26 million in new common stock. Cal State University received $20,000,000 cash for 80,000 five-game-season b. football tickets. None of the games have been played. c. Cal State played the first football game referred to in (b). 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 d. for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from Hall's standpoint. A popular snowboarding magazine company received a total of $1,800 today e. from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. T-Mobile sold a $100 cell phone plan for service in September to a customer f. who charged the sale on his credit card. Answer from the standpoint of T-Mobile.
For each of the transactions, if revenue is to be recognized in September, indicate the amount. (Enter you in millions.) Activity Amount a. Gillespie Enterprises Inc. issued $26 million in new common stock. Cal State University received $20,000,000 cash for 80,000 five-game-season b. football tickets. None of the games have been played. c. Cal State played the first football game referred to in (b). 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 d. for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from Hall's standpoint. A popular snowboarding magazine company received a total of $1,800 today e. from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. T-Mobile sold a $100 cell phone plan for service in September to a customer f. who charged the sale on his credit card. Answer from the standpoint of T-Mobile.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Where should revenue be recognized? Each transaction is different but which transactions recognize revenue?
Transcribed Image Text:For each of the transactions, if revenue is to be recognized in September, indicate the amount. (Enter your an
in millions.)
Activity
Amount
a. Gillespie Enterprises Inc. issued $26 million in new common stock.
Cal State University received $20,000,000 cash for 80,000 five-game-season
b.
football tickets. None of the games have been played.
C.
Cal State played the first football game referred to in (b).
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
d.
for $50,000 as a deposit to be applied against amounts earned during the first
phase of construction. Answer from Hall's standpoint.
A popular snowboarding magazine company received a total of $1,800 today
from subscribers. The subscriptions begin in the next fiscal year. Answer from
the magazine company's standpoint.
e.
T-Mobile sold a $100 cell phone plan for service in September to a customer
f.
who charged the sale on his credit card. Answer from the standpoint of T-Mobile.
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