Momentous Occasions is a photography business that shoots videos at college ­parties. The freshman class pays $ 1,000 in advance on March 3 to guarantee services for its party to be held April 2. The sophomore class promises a minimum of $ 2,800 for filming its formal dance and actually pays cash of $ 4,100 on February 28 at the dance.
Answer the following questions about the correct way to account for revenue under the accrual basis.
a. Considering the $ 1,000 paid by the freshman class, on what date was revenue earned? Did the earnings occur on the same date cash was received?
b. Considering the $ 4,100 paid by the sophomore class, on what date was revenue earned? Did the earnings occur on the same date cash was received?