Daisy Political Consultants has been in existence for many years. During the month of November, the following
Question:
Daisy Political Consultants has been in existence for many years. During the month of November, the following events occurred:
1. The owners contributed an additional $6,500 to the business to finance an expansion of operations.
2. Consulting services totaling $11,000 were performed on credit during November and billed to customers.
3. A loan in the amount of $25,000 was obtained from a wealthy campaign contributor.
4. Expenses in the amount of $6,000 were incurred during the month. One-third had been paid for by month end.
5. Cash of $18,500 was collected from customers for whom services had been performed during September and October.
6. Services totaling $4,500 were performed for customers who had paid in the previous month for the services.
Required
Daisy uses accrual basis accounting. For which of the events above should revenue be recorded in November? In each case, how much revenue should be recorded? If an event does not involve revenue, specify why not.
Step by Step Answer:
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright