une 1, Year 1 Oxian Corp. receives $24,000 from a customer for work to be performed evenly over the next 2 years. What is the amount of revenue that Oxian should recognize on the December 31 income statement for Year 1

$12,000

Explanation:

It is important to remember that revenue is recognized when entity transfers control of a good or a service.

It is also important to remember that revenue can be recognized at a point in time or over time. In our scenario revenue is recognized over time that is over a period of 2 years.

By 31 December, Year 1, using the output method, 1 years work would have been completed and that is the revenue that will be recognized.

Thus recognize (1/2 × $24,000) $12,000 for 1 year`s work completed and transferred to customer over time.

$6,000

Explanation:

journal entry to record deferred revenue:

June 1, year 1, deferred revenue received from customer X

Dr Cash 24,000

    Cr Deferred revenue 24,000

the adjustment entry made to recognize revenue:

December 31, year 1, accrued revenue

Dr Deferred revenue 6,000

    Cr Service revenue 6,000

Accrued revenue = ($24,000/24 months) x 6 months = $6,000

answer; ///human built works;

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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