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. S0; $36,000
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. S0; $36,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter12: The Statement Of Cash Flows
Section: Chapter Questions
Problem 12.16E
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