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Assume you are the accounting manager for Logan’s Landscaping & Design.  On December 1,  2013, Logan Karver, the owner,  presents you with a check for $15,000 from a customer, Anna DeJuliet, to do a landscape design at her residence as soon as the ground thaws in the spring of 2014.  No work on this project can be done until then.  Logan wants you to deposit the check and include the $15,000 in the 2013 income statement.  He is expecting to include the $15,000 in his 2013 net income in order to secure a loan from the bank in January 2014 for some new equipment.  Explain how this check should be accounted for and why. (short answer)

Assume you are the accounting manager for Logan’s Landscaping & Design.  On December 1,  2013, Logan Karver, the owner,  presents you with a check for $15,000 from a customer, Anna DeJuliet, to do a landscape design at her residence as soon as the ground thaws in the spring of 2014.  No work on this project can be done until then.  Logan wants you to deposit the check and include the $15,000 in the 2013 income statement.  He is expecting to include the $15,000 in his 2013 net income in order to secure a loan from the bank in January 2014 for some new equipment.  Explain how this check should be accounted for and why. (short answer)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume you are the accounting manager for Logan’s Landscaping & Design.  On December 1,  2013, Logan Karver, the owner,  presents you with a check for $15,000 from a customer, Anna DeJuliet, to do a landscape design at her residence as soon as the ground thaws in the spring of 2014.  No work on this project can be done until then.  Logan wants you to deposit the check and include the $15,000 in the 2013 income statement.  He is expecting to include the $15,000 in his 2013 net income in order to secure a loan from the bank in January 2014 for some new equipment. 

Explain how this check should be accounted for and why. (short answer)

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