PHILLIPS CH. 3 FINANCIAL REPORTING REVENUE Pg. 60 Please indicate the amount of revenue, if any, that should be recognized in June for each activity and explain why. 1) In June, Florida Flippers provided $32000 in diving isntruction to customers. 2) In June new customers paid $8200 cash for diving trips to be provided by Florida Flippers; $5200 in trips were made in June and the rest in July. 3) In June, customers paid $3900 cash for instruction they received in May

PHILLIPS CH. 3 FINANCIAL REPORTING REVENUE Pg. 60 Please indicate the amount of revenue, if any, that should be recognized in June for each activity and explain why. 1) In June, Florida Flippers provided $32000 in diving isntruction to customers. 2) In June new customers paid $8200 cash for diving trips to be provided by Florida Flippers; $5200 in trips were made in June and the rest in July. 3) In June, customers paid $3900 cash for instruction they received in May

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 40E: Exercise 3-40 Revenue and Expense Recognition Electronic Repair Company repaired a high-definition...

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Case Study 1Sub Sequo Ltd. is a food wholesaler operating throughout the Caribbean and its year end was 30 September 2021. The final audit is nearly complete and it is proposed that the financial statements and audit report will be signed on 13 December. Revenue for the year is $78 million and profit before taxation is $7.5 million. The following events have occurred subsequent to the year end.ReceivableA customer of Sub Sequo Ltd has been experiencing cash flow problems and its yearend balance is $0.25 million. The company has just become aware that its customer is experiencing significant going concern difficulties. Sub Sequo believe that as the company has been trading for many years, they will receive some, if not full, payment from the customer; hence they have not adjusted the receivable balance.LawsuitA key supplier of Sub Sequo is suing them for breach of contract. The lawsuit was filed prior to the year end, and the sum claimed by them is $1.2 million. This has been disclosed…
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