In 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its client's
Question:
In 2018, Ginzel Corporation agreed to provide a client with 20 detailed marketing analyses of its client's key products for a total fee of $110,000. The fee was computed as $5,000 per report x 20 reports = $100,000, plus $10,000 to extract the necessary data from the client's system and convert it into the format Ginzel needs to do the analysis. It cost Ginzel $4,000 to complete the data extraction and conversion.
As of December 31, 2018, Ginzel has completed the conversion of the data and has completed and delivered 7 of the 20 marketing reports to the client.
Required:
1. How much revenue should Ginzel recognize in 2018?
2. How should Ginzel account for the $4,000 in cost it incurred to extract and convert the client's data?
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Financial Reporting and Analysis
ISBN: 978-1259722653
7th edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer