Ask Question
BusinessBusiness
1 July, 23:47

On November 1, 2021, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,440 for the one-year period. Taylor is confident that King will pay that amount, but payment is not scheduled to occur until 2022. Taylor should recognize revenue in 2021 in the amount of Multiple Choice $4,440. $740. $2,220. $0.

+1
Answers (1)
  1. 2 July, 00:49
    0
    The correct answer is $740

    Explanation:

    The amount which will be recognized by Taylor as revenue in the year 2021 is computed as:

    Amount = Agreed amount to pay * Number of months / Total months

    where

    Agreed amount to pay is $4,440

    Number of months is 2 months (that is November and December)

    Total months in a year is 12

    Putting the values above:

    Amount = $4,440 * 2/12

    Amount = $740

    This arrangement qualifies for the recognition of revenue over the time as the customer consumes the advantage of the seller service as the seller offers. Therefore, Taylor would be acknowledge the revenue of $740.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “On November 1, 2021, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
H2 O'Yeah has designed a water purification device that is drastically different and far superior to any product currently on the market.
Answers (1)
In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of units in finished goods inventory at the beginning of the period, then the expected number of units sold is less than the
Answers (1)
Rinker audio products has had recurring problems in its product quality. the company's manufacturing vice president suggests that rinker use a statistically based methodology that aims to reduce defects, boost productivity, eliminate waste, and cut
Answers (1)
Countries that currently have low real GDPs per capita are destined to always have lower living standards than countries that currently have high real GDPs per capita. True or False
Answers (1)
Taxon Corp. granted restricted stock units (RSUs) representing 30 million of its $1 par common shares to executives, subject to forfeiture if employment is terminated within three years.
Answers (1)
New Questions in Business
On October 1, Sam's Painting Service borrows $150,000 from National Bank on a 3-month, $150,000, 4% note.
Answers (1)
Papa Bear Corporation's unadjusted trial balance includes the following balances (assume normal balances) : Accounts Receivable $1,119,000Allowances for Doubtful Accounts $ 21,300Bad debts are estimated to be 6% of outstanding receivables.
Answers (1)
In which of the following circumstances are competitive pressures associated with the bargaining power of buyers relatively moderate-to-weak? The supply of soccer balls increases during the World Cup season.
Answers (1)
Amanda, a business analyst, presents false research findings to her manager to prove that the desired results have been achieved and to get appreciation for her work. Which level of moral development is illustrated in the given scenario? a.
Answers (1)
Fun, Incorporated, a major gaming software company, is experiencing conflict between theyoung Internet-savvy employees who design the games and the older, less computer-literate executives who run the company.
Answers (1)
Home » Business » On November 1, 2021, Taylor signed a one-year contract to provide handyman services on an as-needed basis to King Associates, with the contract to start immediately. King agreed to pay Taylor $4,440 for the one-year period.
Sign Up Forgot Password?