On 21.11.2OX1, the company ZITA signed a contract with a customer for the provision of services amounting to 4200 euros and received for the amount of 1200 euros. The provision of services will start in January of 20X2 and will be completed this year. Part of the total price of 500 will be paid by the customer in the year 20X3. Explain, based on the relevant conceptual definitions, the appearance of the above data in the accounting statements of the years 20X1 and 20X2 (Balance Sheet and Income Statement), according to the accrual principle
On 21.11.2OX1, the company ZITA signed a contract with a customer for the provision of services amounting to 4200 euros and received for the amount of 1200 euros. The provision of services will start in January of 20X2 and will be completed this year. Part of the total price of 500 will be paid by the customer in the year 20X3. Explain, based on the relevant conceptual definitions, the appearance of the above data in the accounting statements of the years 20X1 and 20X2 (Balance Sheet and Income Statement), according to the accrual principle
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On 21.11.2OX1, the company ZITA signed a contract with a customer for the provision of services amounting to 4200 euros and received for the amount of 1200 euros. The provision of services will start in January of 20X2 and will be completed this year. Part of the total price of 500 will be paid by the customer in the year 20X3.
Explain, based on the relevant conceptual definitions, the appearance of the above data in the accounting statements of the years 20X1 and 20X2 (
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