A company has the following revenue sources and expenditure commitments. Calculate the income and expenses that should be recognized for the year by item. Show your calculations.

A $1,200 contract to provide monthly services, with 2 years paid in full upfront. A $5,000 week of salary with only Monday and Tuesday being part of this year. A $1,000 deposit for a conference for January of the following year A promise to buy $250 of product in December of this year.

Answer rating: 100% (QA)

To calculate the income and expenses that should be recognized for the year by item we need to consider the revenue recognition and expense recognitio... View the full answer