Gomez Company collected $22,500 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? a. $7,500; $7,500 b. $22,500; $22,500 c. $7,500; $22,500 d. $0; $22,500 Morris Company collected $36,000 on October 1, Year 2 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Morris Company report related to this contract on its income statement for the year ended December 31, Year 2? How much would it report as cash flows from operating activities for Year 2? a. $9,000; $36,000 b. $12,000; $12,000 c. $9,000; $9,000 d. $0; $36,000 Porter Inc. collected $48,000 on August 1, Year 3 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Porter Inc. report related to this contract on its income statement for the year ended December 31, Year 3? How much would it report as cash flows from operating activities for Year 3? a. $0; $48,000 b. $20,000; $48,000 c. $16,000; $48,000 d. $16,000; $16,000

On June 1, Davis Inc. issued an $76,100, 12%, 120-day note payable to Garcia Company Assume that the fiscal year of Garcia ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar. a.$1,522 b.$9,132 c.$761 d.$2,308

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $40,500 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.   Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent.   Paid $70,500 cash for other operating expenses during the year.   Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.   Recognized the accrued interest at December 31, Year 1.     The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1.   Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent.   Repaid the principal of the note and applicable interest on April 1, Year 2.   Paid $83,500 of…

In November and December 20X1, Gee Company, a newly organized magazine publisher, received $36,000 for 1,000 three-year subscriptions at $12 per year, starting with the January 20X2 issue of the magazine. Required: How much should Gee report in its 20X1 income statement for subscriptions revenue on an accrual basis? What are Gee's cash receipts in 20X1? Revenue recognized Cash receipts

On September 1, Year 1, Western Company loaned $39,600 cash to Eastern Company. The one-year note carried a 6% rate of Interest. The amount of Interest revenue on the Income statement and the amount of cash flow from operating activities shown on Western's December 31, Year 1, financial statements would be: Multiple Choice O $792 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and zero cash flow from operating activities. $1,584 Interest revenue and $2,376 cash flow from operating activities. $792 Interest revenue and $2,376 cash flow from operating activities.

Please list all of the journal entries for Other Current Year Contracts. Your company name is PP. See below information: PP initiated a number of other contracts in the current year.  The total dollar amount of all other contracts initiated was $5,919,700. This amount is broken down as follows: Goods and services which were delivered and for which cash was received: $3,444,429. Goods and services which were not delivered, but for which cash was received: $ 340,390. Goods and services which were delivered, but for which cash was not received: $1,538,481. Goods and services which were not delivered and for which cash was not received: $596,400. Of the total goods and services delivered, $3,267,650 was related to goods and $1,715,260 was related to services.

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $43,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. Paid $73,000 cash for other operating expenses during the year. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $86,000 of other operating…

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:Received $43,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Paid $73,000 cash for other operating expenses during the year.Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2:Paid the balance of the sales tax due for Year 1.Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Repaid the principal of the note and applicable interest on April 1, Year 2.Paid $86,000 of other operating expenses…

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:Received $43,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Paid $73,000 cash for other operating expenses during the year.Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2:Paid the balance of the sales tax due for Year 1.Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Repaid the principal of the note and applicable interest on April 1, Year 2.Paid $86,000 of other operating expenses…

The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:Received $43,000 cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, Year 1.Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Paid $73,000 cash for other operating expenses during the year.Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2.Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2:Paid the balance of the sales tax due for Year 1.Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 7 percent.Repaid the principal of the note and applicable interest on April 1, Year 2.Paid $86,000 of other operating expenses…