Joe Restaurant Ltd operates fine dine restaurant in polity when they make the reservation. Deposit will apply against their bill. Tom made a reservation on Jan 01, 2021, for Feb 14, 2021 and made a deposit of $50 from his credit card. He dine in on Feb 14, 2021 and received a bill of $200, he paid $150 since he already had a credit of $50 from his deposit on Jan 01, 2021. Based on the revenue recognition accounting principal, when would Joe record the revenue of $200? A Joe Restaurant will record $50 revenue on Jan 01 and $150 revenue on Feb 14. B) Joe Restaurant will record the entire revenue of $200 on on Feb 14. C Joe Restaurant will record the entire revenue of $200 on Jan 01

Joe Restaurant Ltd operates fine dine restaurant in polity when they make the reservation. Deposit will apply against their bill. Tom made a reservation on Jan 01, 2021, for Feb 14, 2021 and made a deposit of $50 from his credit card. He dine in on Feb 14, 2021 and received a bill of $200, he paid $150 since he already had a credit of $50 from his deposit on Jan 01, 2021. Based on the revenue recognition accounting principal, when would Joe record the revenue of $200? A Joe Restaurant will record $50 revenue on Jan 01 and $150 revenue on Feb 14. B) Joe Restaurant will record the entire revenue of $200 on on Feb 14. C Joe Restaurant will record the entire revenue of $200 on Jan 01

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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S. Waweru starts business on 1st July 2020, when he deposits Shs. 18,000 into his business bank account and Shs. 2,500 in his cash account. During the month of July, he undertakes the following transactions:- 2020 July 3 He purchases shop fittings for sh. 2,500 and pays by cheque. July 4 He buys a motor vehicle from AB & Co. on credit Sh. 3,000. July 6 He buys stock for Sh. 1,500 and pays through bank. July 8 He sells goods for cash Sh.1,000. July 10 Buys goods on credit from XY & Co. for Sh. 1,200 July 12 Sells goods to A. Smith for Sh. 900 on credit July 13 Pays wages Sh. 120 by cash July 14 A. Smith returns goods worth Sh. 200 July 15 Pays to AB & Co. Sh. 3,000 by cheque July 17 Goods returned to XY & Co. amounting to Sh. 350 July 21 Receives from A. Smith a cheque for Sh. 700 July 25 Sells goods for cash Sh. 300. July 30…
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