Reference no: EM132316751

Question

These questions are based on Accrual Accounting on the timing of revenue and expense recognition.

1). If You collect $100 in November for an event that will take place in February, when do you record the money on the income statement? How much of this money do you record on the income statement? What will the effect be on the balance sheet and income statement in November and in February?

2). If you hire someone to perform a service for me for an event and you will pay that person upon completion of the event, when should the expense for the service be recorded on the income statement? What will the effect be on the balance sheet and income statement in November and in February?

3). you will have to pay a deposit in November for the rooms for some of the people for the event and the balance for the rooms will be due at the end of the event. When should the expense be recorded on the income statement? What will the effect be on the balance sheet and income statement in November and in February?

4). you will have to pay a 50% deposit for the food December (2 months before the event) and then pay the other 50% in January. When should the expense for the food be recorded on the income statement? What will the effect be on the balance sheet and income statement in November? In December? In January? In February?

5). you was able to use a room at the venue at not cost (for free). What will the effect be on the balance sheet and the income statement in November? In February?

6.) you reserved a bus to take people around and i will have to pay for it at the end. you will receive a bill from them and you will have to pay within 30 days after receiving it. you did not have to pay a deposit or anything for it upfront. When should you record the expense for the bus on the income statement? What will the effect be on the balance sheet and the income statement in November? In February?

7.) you have some artist coming to speak at the event and you will have to pay them within 30 days of the end of the event. When should the expense be recorded on the income statement? What will the effect be on the balance sheet and the income statement in November? In February?