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Unformatted text preview: cancellations have not occurred. Furthermore, Engineer Dans does not expect significant variations to occur in the foreseeable future. During the calendar year ended December 31, 2008, Engineer Dans quarterly membership refunds were as follows: March $54,900; June $18,715; September $8,803; and December $4,667. Memberships issued during the year were: Month Number Month Number January 2,000 July 500 February 2,000 August 500 March 1,500 September 1,000 April 1,000 October 800 May 900 November 900 June 500 December 800 Requirements Prepare a letter to Engineer Dans regarding their revenue recognition policy and answer the following: 1. Prepare a schedule showing quarterly and annual membership fees earned by Engineer Dans during 2008. 2. How would you initially classify the membership fees in Engineer Dans financial statements? 3. How would your answer to requirement 1 change if Engineer Dans could not accurately predict membership refunds? Page | 1...
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This note was uploaded on 07/30/2009 for the course MGMT 120A taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08