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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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