Question 3 of 8 value 187 points E34 Identifying Accrual Bas

Question 3 (of 8) value 1.87 points E3-4 Identifying Accrual Basis Revenues [LO 3-1, LO 3-2] According to the revenue recognition principle, revenues should be recognized when they are eaned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September Required: For each of the transactions,if revenue is to be recognized in September, indicate the amount. Activity Amount a. Gillespie Enterprises Inc. issued $26 million in new common stock. b. c. Cal State played the first football game referred to in (b). $ 26,000,000 Cal State University received $20,000,000 cash for 80,000 five-game season football tickets. None of the games have been played Hall Construction Company signed a contract with a customer for the for $50,000 as a deposit to be applied against amounts eamed during the first d. phase of construction. Answer from Hall\'s standpoint. A popular snowboarding magazine company received a total of $1,800 today the magazine company\'s standpoint T-Mobile sold a $100 cell phone plan for service in September to a customer e. from subscribers. The subscriptions begin in the next fiscal year. Answer from who charged the sale on his credit card. Answer from the standpoint of T-Mobile References eBook& Resources MacBook Pro SC

Solution

Activity Amount a. Gillespie Enterprises Inc. issued $26 million in new common stock. 0 b. Cal State University received $20,000,000 cash for 80,000 five-game season football tickets. None of the games have been played. 0 c. Cal State played the first football game referred to in (b). 4,000,000 d. Hall Construction Company signed a contract with a customer for the construction of a new $500,000 warehouse. At the signing, Hall received a check for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from Hall’s standpoint. 0 e. A popular snowboarding magazine company received a total of 1,800 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company’s standpoint. 0 f. T-Mobile sold a $100 cell phone plan for service in September to a customer who charged the sale on his credit card. Answer from the standpoint of T-Mobile. 100