Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000
Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...
Related questions
Question
Transcribed Image Text:Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be
provided over a one-year period beginning on that date. How much revenue would Gomez
Company report related to this contract on its income statement for the year ended December 31,
Year 1? How much would it report as cash flows from operating activities for Year 1?
a. $7,500; $7,500
b. $22,500; $22,500
c. $7,500; $22,500
d. $0; $22,500
Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be
provided over a one-year period beginning on that date. How much revenue would Morris
Company report related to this contract on its income statement for the year ended December
31, Year 2? How much would it report as cash flows from operating activities for Year 2?
a. $9,000; $36,000
b. $12,000; $12,000
c. $9,000; $9,000
d. $0; $36,000
Porter Inc. collected $48,000 on August 1, Year 3 from a customer for
services to be provided over a one-year period beginning on that date.
How much revenue would Porter Inc. report related to this contract
on its income statement for the year ended December 31, Year 3?
How much would it report as cash flows from operating activities for
Year 3?
a. $0; $48,000
b. $20,000; $48,000
c. $16,000; $48,000
d. $16,000; $16,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage