On April 1, Year 1, TFC Inc. accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats. The contract is for 12 months. What is the remaining liability that will appear on the company's statement of financial position (balance sheet) at the end of May, Year 1? O $3,000 O $12,000 O $11,000 O $10,000
On April 1, Year 1, TFC Inc. accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats. The contract is for 12 months. What is the remaining liability that will appear on the company's statement of financial position (balance sheet) at the end of May, Year 1? O $3,000 O $12,000 O $11,000 O $10,000
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
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 9MC
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![On April 1, Year 1, TFC Inc. accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats. The contract is for 12 months. What is the remaining
liability that will appear on the company's statement of financial position (balance sheet) at the end of May, Year 1?
O $3,000
O $12,000
O $11,000
O $10,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7ed6912-b2c6-4065-b0eb-ce104ed6ab5a%2Fc7e56720-fd18-427c-b409-72bededd17a7%2Fci5elj_processed.png&w=3840&q=75)
Transcribed Image Text:On April 1, Year 1, TFC Inc. accepted a $12,000 advance payment for maintaining a customer's fleet of sailboats. The contract is for 12 months. What is the remaining
liability that will appear on the company's statement of financial position (balance sheet) at the end of May, Year 1?
O $3,000
O $12,000
O $11,000
O $10,000
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