What is the entry to record the receipt of cash

Reference no: EM132661581

Question - On January 5, 2018, Win Company enters into a cancellable contract to transfer product G to Mr. Gray on April 5, 2018. The contract requires that Mr. Gray pay consideration of $2,000 in advance on January 15, 2018. Mr. Gray pays the consideration on March 5, 2018. Then Win delivered the product on March 31, 2018.

Q1. What is the entry on January 15, 2018 when payment of the contract is due?

a. Receivable 2,000 Contract Liability 2,000

b. Receivable 2,000 Revenue 2,000

c. Contract Liability 2,000 Revenue 2,000

d. No Entry

Q2. What is the entry to record the receipt of cash of $2,000 on March 5, 2018?

a. Cash 2,000 Revenue 2,000

b. Cash 2,000 Receivable 2,000

c. Receivable 2,000 Revenue 2,000

d. Cash 2,000 Contract Liability 2,000

Q3. What is the entry on March 31, 2018 to record satisfaction of performance obligation?

a. Cash 2,000 Receivable 2,000

b. Receivable 2,000 Revenue 2,000

c. Contract Liability 2,000 Revenue 2,000

d. No Entry

Reference no: EM132661581

Questions Cloud

What are key features of one of the bonds : What are the key features of one of the bonds issued by your chosen company? Discuss how the bond's terms and collateral can affect the bond's interest rate.

Explain what is subsequent events : Explain what is subsequent events. List two audit procedures the auditor may use to obtain sufficient audit evidence if the event was adjusting

Ethical and socially responsible marketing analysis : Distinguish between social responsibility, ethical, and legal issues and their effect on marketing. Define sustainability

What is the discount or premium on the new note payable : The present value of an ordinary annuity of 1 at 10% for three periods is 2.49. What is the discount or premium on the new note payable on December 31, 2019

What is the entry to record the receipt of cash : Mr. Gray pays the consideration on March 5, 2018. Then Win delivered the product on March 31, 2018. What is the entry to record the receipt of cash

The research report linking autism with vaccinations : The research report linking Autism with vaccinations-the statistical data and methodology were changed in one study to show a connection

Principal risk factors in information system project : What are the principal risk factors in an information system project and how can they be managed?

Is that illegal under state and federal law : The women are suing because they are being fired for being too heavy. Is that illegal under state and federal law?

Manipulated or manufactured statistics to appear plausible : Find an example of false news and talk about how it manipulated or manufactured statistics to appear plausible.

User Account

All Pages