I-03.07 Problem

I-03.07 Problem - I-03.07 Roger Wilde is a CPA. He has...

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I-03.07 Roger Wilde is a CPA. He has numerous clients, one of which is Wedding World (WW). WW is a full service bridal consulting firm, and is interested in buying Wedding Wonders Photography Studio (WWPS). WWPS uses the cash basis of accounting. Roger has been retained to help WW acquire WWPS, and you are a staff accountant working for Roger. Begin by evaluating the following facts for June. Revenues WWPS provides a complete wedding-day package for $2,950. The package requires a $1,000 down payment at the time the contract is signed, a $1,200 payment on the date of the wedding, and a final $750 payment 30 days after the wedding. The company uses a mobile digital processing lab, and is able to deliver a complete wedding portfolio at the close of the reception on the wedding day itself! 75 weddings were photographed during June. All of these events were booked in earlier months. During June, an additional 92 weddings were booked for future months.
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

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