# On January 1, a flower shop contracts with customers to provide flowers for their wedding on June 2. The total contract price is \$3,000, payable in equal installments for the next six months on the first of each month (with the first payment due January 1). How much will be recorded as revenue during the month of April?

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 9, Problem 3Q
Textbook Problem
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## On January 1, a flower shop contracts with customers to provide flowers for their wedding on June 2. The total contract price is \$3,000, payable in equal installments for the next six months on the first of each month (with the first payment due January 1). How much will be recorded as revenue during the month of April?

To determine

Concept introduction:

 A. General Accounting Principles General Accounting Principles are policies, assumptions and guidelines for preparing financial statements. B. Measurement (Cost) Principle Measurement (Cost) Principle uses the actual cost to record the transaction. C. Business Entity assumption Business Entity assumption assumes that business has a separate entity than its owner (s). D. Revenue Recognition Principle Revenue Recognition Principle states that the revenue should be recorded only when the product and services are sold and delivered. E. Specific Accounting Principle Specific Accounting Principle is rules used in reporting events and transactions. F. Matching Principle Matching Principle requires the recording of the expenses with respect to the revenue earned for a particular period. G. Going Concerns Assumption Going Concerns Assumption assumes that the business will continue operating. H. Full Disclosure Principle Full Disclosure Principle requires the disclosure of items in the financial statement using the notes to the financial statement behind the financial statement.

To indicate:

The Revenue to be recorded in the month of April.

### Explanation of Solution

Revenue recognition: This principle states that the revenue should be recorded when the product and services are sold and delivered.

The revenue to be recorded in the month of April ...

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