Listed below are four different situations involving revenue and/or expenses for a given business. Each statement...
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Listed below are four different situations involving revenue and/or expenses for a given business. Each statement is followed by two choices as to the accounting period (or date) when the business might recognize this revenue or expense. INSTRUCTIONS: Select the appropriate accounting alternative by applying the realization and matching principle, and EXPLAIN YOUR REASONING a. Agritourism Ticket Sales: Because of the recent pandemic, agritourism farms are now selling reserved admission tickets well before the scheduled date of the farm visit. i. Option 1: Date when ticket is sold; ii. Option 2: Date when persons visit farm b. Tractor Sales: In order to increase sales, Tractor Supply in Morgantown WV is offering a promotion for its tractors featuring "No payments until January 2022." i. Date when tractor is sold; Date that payment is received from customer) c. Farmer Training Registration Fee: The WVU Farmer Training Center is offering a 6-week course beginning February 01, 2022. Registration is opened from October 01-10,2021. i. Period farmer registers for the course Period Farmer attends/completes the training course d. Purchased a one-day Event Insurance Policy for a farm-to-table dinner to be held on January 8th, 2022. i. Date Insurance Policy is purchased ii. Date Event is held Listed below are four different situations involving revenue and/or expenses for a given business. Each statement is followed by two choices as to the accounting period (or date) when the business might recognize this revenue or expense. INSTRUCTIONS: Select the appropriate accounting alternative by applying the realization and matching principle, and EXPLAIN YOUR REASONING a. Agritourism Ticket Sales: Because of the recent pandemic, agritourism farms are now selling reserved admission tickets well before the scheduled date of the farm visit. i. Option 1: Date when ticket is sold; ii. Option 2: Date when persons visit farm b. Tractor Sales: In order to increase sales, Tractor Supply in Morgantown WV is offering a promotion for its tractors featuring "No payments until January 2022." i. Date when tractor is sold; Date that payment is received from customer) c. Farmer Training Registration Fee: The WVU Farmer Training Center is offering a 6-week course beginning February 01, 2022. Registration is opened from October 01-10,2021. i. Period farmer registers for the course Period Farmer attends/completes the training course d. Purchased a one-day Event Insurance Policy for a farm-to-table dinner to be held on January 8th, 2022. i. Date Insurance Policy is purchased ii. Date Event is held
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a Option 2 Date when person visits the farm This is due to the fact that the event of realization of ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-1259692406
18th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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