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Political Consultants has been in existence for many years During the month of Novembe

Revenue Recognition and Accrual Accounting

U.S. 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 monthend.

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: U.S. uses accrual basis accounting. Forwhich of the events, above should revenue be recorded? If an event does not involve revenue, specify why not.

Apr 30 2018 Read more Less More

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