Need help finishing the empty slots and the net income and any other errors. rec

Question

Need help finishing the empty slots and the net income and any other errors.

recognized when they are earned e company performs acts promised to the customer. For most businesses, this According to the revenue recognition principle, revenues should be which happens condition is met at the point of delivery of goods or services. The following transactions occurred in September when th Required For each of the transactions, if revenue is to be recognized in September, indicate the amount. Activity Amount a. Gillespie Enterprises Inc. issued $23 million in new common stock. 0 Cal State University received $31,360,000 cash for 98,000 five-game season football tickets. None of the games have been played c. Cal State played the first football game referred to in (b) Hall Construction Company signed a contract with a customer for the construction of a new $558,000 warehouse. At the signing, Hall received a check for $55,800 as a deposit to be applied against amounts earned during the first phase of construction. Answer from Hall's standpoint. A popular snowboarding magazine company received a total of $1,500 today 0 e. from subscribers. The subscriptions begin in the next fiscal year. Answer from$ 0 the magazine company's standpoint. T-Mobile sold a $400 cell phone plan for service in September to a customer who charged the sale on his credit card. Answer from the standpoint of T-Mobile 400

Explanation / Answer

Cal state played the first football game refeered to in B.

Revenue to be recognized is computed below.

Revenue collected = $31360000, Number of tickets= 98000, price of one ticket = $31360000/98000 =$320

First football game played out of 5, therefore amount to be recognized = 98000tickets*1/5*$320

= $6272000

In part 2

i)Earned $620 of service revenue,collected half in cash with balance of credit

Asset being +$310 cash + $310 Accounts receivable = Liabilities +0 + Stockholder's equity +$620 Service Revenue.

All the other answers provided in the questions are correct and hence not re worked.

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