Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500

Question

Want to see more full solutions like this?

Answer 1

Textbook Question

Chapter 3, Problem 1SEQ

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees?
A. June, $15,000; July, $0; and August, $0
B. June, $0; July, $6,500; and August, $8,500
C. June, $8,500; July, $6,500; and August, $0
D. June, $0; July, $8,500; and August, $6,500

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

A toy company applies overhead based on machine hours. It takes 4 machine hours to produce a large dollhouse and 2.5 machine hours to produce a small dollhouse. The company produces 3,000 large dollhouses and 8,000 small dollhouses per year. The total manufacturing overhead is $900,000. What is the cost of one small dollhouse under a traditional job order costing system? A. $55.25 B. $60.00 C. $70.31 D. $75.00

Provide answer

What is the number of equivalent units for material costs on these accounting question?

Answer 2

Textbook Question

Chapter 3, Problem 1SEQ

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees?
A. June, $15,000; July, $0; and August, $0
B. June, $0; July, $6,500; and August, $8,500
C. June, $8,500; July, $6,500; and August, $0
D. June, $0; July, $8,500; and August, $6,500

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Textbook Question

Chapter 3, Problem 1SEQ

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees?
A. June, $15,000; July, $0; and August, $0
B. June, $0; July, $6,500; and August, $8,500
C. June, $8,500; July, $6,500; and August, $0
D. June, $0; July, $8,500; and August, $6,500

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Textbook Question

Chapter 3, Problem 1SEQ

Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees?
A. June, $15,000; July, $0; and August, $0
B. June, $0; July, $6,500; and August, $8,500
C. June, $8,500; July, $6,500; and August, $0
D. June, $0; July, $8,500; and August, $6,500

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Answer 8

Expert Solution & Answer

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept Introduction:

Accrual Basis accounting:

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

To Indicate:

The time of recording the revenue using the accrual method

Answer 12

Answer to Problem 1SEQ

A. June $15,000, July $0, August $0

Answer 13

Explanation of Solution

Under the accrual basis, the revenue and expenses are recorded accreting to their accrual for the given period and cash receipts and payments are not considered to decide their accrual. The net income is calculated using the accrued revenue and accrued expenses belonging to the particular period.

In the given case the lawyer has performed the services of $15,000 in the month of June; hence the revenue for the month of June shall be $15,000. And there shall be no revenue recognized for the months August and September.

Answer 14

Ch. 3 - Assume that a lawyer bills her clients $15000 on...Ch. 3 - On January 24, 20Y8, Niche Consulting collected...Ch. 3 - Prob. 3SEQ Ch. 3 - If the supplies account indicated a balance of...Ch. 3 - The balance in the unearned rent account for Jones...Ch. 3 - Would AT&T and Microsoft Use the cash basis or the...Ch. 3 - How are revenues and expenses reported on the...Ch. 3 - Fees for services provided are billed to a...Ch. 3 - Employees performed services in 20Y8, but the...Ch. 3 - Prob. 5CDQ

Videos

Answer to Problem 1SEQ

Explanation of Solution

Want to see more full solutions like this?

Chapter 3 Solutions

Additional Business Textbook Solutions