On May 1, 2018, Varga Tech Services signed a $126,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2018, to April 30, 2019, with Shaffer paying the entire $126,000 on May 1, 2018.

On May 1, 2018, Varga Tech Services signed a $126,000 consulting contract with Shaffer Holdings. The contract requires Varga to provide computer technology support services whenever requested over the period from May 1, 2018, to April 30, 2019, with Shaffer paying the entire $126,000 on May 1, 2018.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 24E

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shobha

On May 1, 2018, Varga Tech Services signed a $126,000 consulting contract with Shaffer Holdings. The contract requires Varga to
provide computer technology support services whenever requested over the period from May 1, 2018, to April 30, 2019, with Shaffer
paying the entire $126,000 on May 1, 2018,
How much revenue should Varga recognize in 2018? (Do not round intermediate calculation.)
Revenue

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