According to the revenue recognition principle


According to the revenue recognition principle, if revenue to is going to be recognized in August, indicate the amount for each.

1. "Billy's Builders company signed a contract with a customer for the construction of a new $500,000 home. At the signing, Billy's received a check for $50,000 as a deposit to be applied against amounts earned during the first phase of construction. Answer from Billy's standpoint."

2. "Texas State University received $20,000,000 cash for 80,000 five-game season football tickets. None of the games have been played.

3. Texas State University played the first game referred to in (2).

4. A magazine company received $800 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint.

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Accounting Basics: According to the revenue recognition principle
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