According to the revenue recognition principle revenues

should be recognized #2689

According to the revenue recognition principle, revenues should be recognized when they are
earned, which happens when the company performs acts promised to the customer. For most
businesses, this condition is met at the point of delivery of goods or services. The following
transactions occurred in September: a. Gillespie Enterprises Inc. issued $ 26 million in new
common stock. b. Cal State University received $ 20,000,000 cash for 80,000 five- game
season football tickets. None of the games have been played. c. Cal State played the first
football game referred to in (b). d. Hall Construction Company signed a contract with a customer
for the construction of a new $ 500,000 warehouse. At the signing, Hall received a check for $
50,000 as a deposit to be applied against amounts earned during the first phase of construction.
Answer from Hall’s standpoint. e. A popular snowboarding magazine company received a total
of $ 1,800 today from subscribers. The subscriptions begin in the next fiscal year. Answer from
the magazine company’s standpoint. f. T- Mobile sold a $ 100 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.Required:For each of the transactions, if revenue is to be recognized in September,
indicate the amount. If revenue is not to be recognized in September, explain why.View
Solution:
According to the revenue recognition principle revenues should be recognized

ANSWER
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