Question

5.) What is the amount of revenue recognized in October on an accrual basis? A.) $9,400...

5.) What is the amount of revenue recognized in October on an accrual basis?

A.) $9,400

B.) $1,900

C.) $1,500

D.) $4,400

The following transactions occurred in October:

  • Received $3,000 cash contribution from the owner of the business on October 4
  • Received $700 cash for services provided to a customer on October 7
  • Received $1,700 from a customer on October 14, in payment of his account receivable which arose from sales in August
  • Borrowed $2,000 from the bank by signing a promissory note on October 20
  • Received $1,200 cash from a customer on October 28 for services to be provided in November
  • Provided services to a customer on credit for $800 on October 30

Homework Answers

Answer #1
correct Option C i.e. $1500
Following transactions have impact on revenue
Increase in revenue
Received $700 cash for services provided to a customer on October 7                           700
Provided services to a customer on credit for $800 on October 30                           800
Total                        1,500
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Revenue recognition – accrual basis vs. cash basis: Ring The Bells, Inc. provides doorbell repair services...
Revenue recognition – accrual basis vs. cash basis: Ring The Bells, Inc. provides doorbell repair services to customers.  The accountant for Ring The Bells noted the following events which took place during April, 2018: On April 1st, provided services worth $1,000 to customers. Customers paid $200 in cash on April 1st, the remaining $800 will be collected in May. On April 6th, received $440 in cash in advance from customers for services which will be provided on May 13th, 2018. On...
Pandey Inc. had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory...
Pandey Inc. had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering six months' rent. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of...
Pandey Inc. had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory...
Pandey Inc. had the following activities during the month: A. Borrowed $7,000,000 cash, signing a promissory note. B. Bought a building for $800,000, paying $200,000 in cash and signing a promissory note for $600,000. C. Rented equipment at a cost of $10,000 per month and issued a check covering six months' rent. D. Provided $104,000 of services and billed customers. E. Purchased $30,000 of supplies on account. F. Received a utility bill for the current period in the amount of...
Required: Prepare the proper journal entries for the following events. (You do not need to describe...
Required: Prepare the proper journal entries for the following events. (You do not need to describe the transaction/event. Just record the proper debits and credits.) Record in ‘no colour’ area directly below the transaction. Sold 600 common shares for $15,000 cash. Dr. Cr. Located a building suitable for a dry-cleaning business, paying the first month's rent of $2,000. Dr. Cr. Purchased cleaning supplies for $500 cash. Dr. Cr. Purchased cleaning equipment costing $6,000. $2,000 for cash and the remainder on...
Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On...
Problem 1-2A (Part Level Submission) Judi Salem opened a law office on July 1, 2017. On July 31, the balance sheet showed Cash $5,900, Accounts Receivable $2,000, Supplies $500, Equipment $6,100, Accounts Payable $4,300, and Owner’s Capital $10,200. During August, the following transactions occurred. 1. Collected $1,700 of accounts receivable. 2. Paid $2,700 cash on accounts payable. 3. Recognized revenue of $7,600, of which $3,200 is collected in cash and the balance is due in September. 4. Purchased additional equipment...
1. Yellow Mango Company had the following transactions during 2016: • Sales of Php 4,500 on...
1. Yellow Mango Company had the following transactions during 2016: • Sales of Php 4,500 on account • Collected Php 2,000 for services to be performed in 2017 • Paid Php 1,625 cash in salaries • Paid Php 5,000 for insurance effective 2017. What is Yellow Mango’s 2016 net income/net loss using accrual accounting? 2. On January 1, 2016, Ms. Scarlet set up a sole proprietorship. She contributed cash of Php 1,500,000 and secured a loan of Php 220,000 ....
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates (SCA), on January 1, Year 1....
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates (SCA), on January 1, Year 1. SCA experienced the following transactions during Year 1. It is now year-end and assume that these transactions are the only transactions the company has. Adjusting entries must be made at year-end. January 1                   Acquired $3,000 cash from issuing common stock. January 15                 Purchased $1,100 of supplies on account. February 20               Recognized $12,800 of consulting revenue for services provided on account. March...
EXERCISES Explain the time period assumption. (LO 1) E3-1 Chloe Davis has prepared the following list...
EXERCISES Explain the time period assumption. (LO 1) E3-1 Chloe Davis has prepared the following list of statements about the time period assumption. Adjusting entries would not be necessary if a company's life were not divided into artificial time periods. The IRS requires companies to file annual tax returns. Accountants divide the economic life of a business into artificial time periods, but each transaction affects only one of these periods. Accounting time periods are generally a month, a quarter, or...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the...
The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: Cash $ 62,860 Accounts receivable 20,500 Supplies 150 Prepaid rent 2,000 Merchandise inventory (9 @ $240) 2,160 Land 4,000 Accounts payable 980 Salaries payable 1,500 Common stock 50,000 Retained earnings 39,190 During Year 5, Pacilio Security Services experienced the following transactions: Paid the salaries payable from Year 4. On January 15, purchased 20 standard alarm systems for cash at a cost...
  1.     In the first month of operations, the total of the debit entries to the cash...
  1.     In the first month of operations, the total of the debit entries to the cash account amounted to $1900 and the total of the credit entries to the cash account amounted to $800. The cash account has a balance of……………….     2.     Dawson’s Delivery Service purchased equipment for $3,500. Dawson paid $500 in cash and signed a note for the balance. Dawson debited the Equipment account, credited Cash and a.   debited the Dawson, Capital account for $2,000. b.   credited...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT