for each transaction below, calculate the amount of revenue to be recorded in the current period using…

for each transaction below, calculate the amount of revenue to be recorded in the current period using accrual - basis accounting.\nrequired:\n a. performed $25,000 of services during the month and received full cash payment from customers at the time of service.\n b. performed $5,000 of services during the month and billed customers. customers are expected to pay next month.\n c. received $12,000 cash from customers for services to be provided next month.\ncomplete this question by entering your answers in the tabs below.\nrequired a\nrequired b\nrequired c\nperformed $25,000 of services during the month and received full cash payment from customers at the time of service.

for each transaction below, calculate the amount of revenue to be recorded in the current period using accrual - basis accounting.\nrequired:\n a. performed $25,000 of services during the month and received full cash payment from customers at the time of service.\n b. performed $5,000 of services during the month and billed customers. customers are expected to pay next month.\n c. received $12,000 cash from customers for services to be provided next month.\ncomplete this question by entering your answers in the tabs below.\nrequired a\nrequired b\nrequired c\nperformed $25,000 of services during the month and received full cash payment from customers at the time of service.

Answer

Explanation:

Step1: Understand accrual - basis accounting

Under accrual - basis, revenue is recognized when earned, not when cash is received.

Step2: Analyze transaction a

Services of $25,000 are performed and cash is received. Revenue is earned in the current period. Revenue = $25,000

Step3: Analyze transaction b

Services of $5,000 are performed. Even though cash is not yet received, revenue is earned as the service is provided. Revenue = $5,000

Step4: Analyze transaction c

Cash of $12,000 is received for services to be provided next month. Revenue is not earned in the current period. Revenue = $0

Answer:

Required A: $25,000 Required B: $5,000 Required C: $0