Ask Question
BusinessBusiness
30 April, 14:51

Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016 Under of service revenue should be recorded for the year ending December 31 2016 this agreemen!, Allen will arn $4,500 monthly and receive payment on January 15, 2017 What amount

A. 0

B. $4500

C. $2250

D. There is not enough information to answer this

+1
Answers (1)
  1. 30 April, 14:54
    0
    The complete question is as under:

    Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016. Under this agreement, Allen will earn $4,500 monthly and receive payment on January 15, 2017. What amount of service revenue should be recorded for the year ending December 31, 2016?

    A. 0

    B. $4500

    C. $2250

    D. There is not enough information to answer this

    Answer:

    Option C - $2250

    Explanation:

    Option C is correct because according to the accrual accounting, the salary that has be accrued for the services rendered by the Allen company will earn monthly $4500 on every 15 of the month. On 31 December, the half of the $4500 has been earned by the Allen and the company owes him in legal terms $2250 (Half of $4500). This means the Allen Company must recognize its sale $2250 and the company that contracted Allen must recognize expenses of $2250 at 31 December, 2017.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016 Under of service revenue should be recorded ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The growth of big data techniques has expanded the use of which decision-making approach?
Answers (2)
What is the name of the control theory that emphasizes the interplay between environmental factors and intrinsic factors?
Answers (1)
Order winners and qualifiers: A. only apply to quasi-manufacturing firms B. remain constant over time C. are consistent between manufacturing and service organizations D. only matter when responding to formal competitive bid requests E.
Answers (1)
On june 8, williams company issued an $80,000, 5%, 120-day note payable to brown industries. assuming a 360-day year, what is the maturity value of the note? a. $82,600 b. $84,000 c. $81,333 d. $88,200
Answers (1)
Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural vistas. an appropriate government policy yielding the efficient outcome would be a. select one: a. pigouvian subsidy. b.
Answers (1)
New Questions in Business
Transfer payments are not included in gdp calculation because these are
Answers (1)
In which year were tobacco commercials banned from network television in the united states?
No Answers
Maggie's manager notices that she exhibits an external locus of control when she speaks about her work. Her manager should Group of answer choices a. direct Maggie toward a job with more autonomy. b.
Answers (1)
Consider this argument: "The kidnappers have taken eight people hostage and are holding them at a farmhouse just outside town. If the SWAT team assaults the farmhouse, the hostages could be killed.
Answers (1)
Rent seeking is an attempt to A. use the government for individual benefit at the expense of others. Regulatory capture is an example of this, where a regulatory agency makes decisions benefiting the firm being regulated. B.
Answers (1)
Home » Business » Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016 Under of service revenue should be recorded for the year ending December 31 2016 this agreemen!
Sign Up Forgot Password?