{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 7 - between the date of the last billing and year end...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Suggested solutions to preparation questions – Week 7 Chapter 12 Discussion questions No. 10 a Percentage of completion method or completed contract method. b On receipt of cash the asset account ‘cash’ would increase and the liability account Revenue Received in Advance would also increase. Each month at time of issue of the magazine the liability account would decrease by 1/12 and a revenue account would increase. c Probably on delivery. d On delivery of each job. e On completion of each installation. No. 11 a At the time of billing although an accrual will be taken up at year end to cover calls made
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: between the date of the last billing and year end. b Generally not until the customer has taken the flight. c Generally at the time of sale. d Similar to (b) above except that as work is completed revenue account would be credited. e. At the time of cash sale. Problem 12.3 1 No 2 No 3 No (inventory, asset assuming perpetual) 4 No 5 No 6 No Problem 12.4 1 Not at time of taking out the loan, but an interest expense will accrue each day of the loan until it is paid. 2 Yes, electricity expense. 3 No, but $1000 will be recognised as revenue each month....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern