12/6/24
Accrual basis accounting example #2
Casino agrees to host a large convention at its convention center to take place in November 2024 § Contract is signed in July 2024 § $300,000 deposit is received from the third party in September 2024 § Convention takes place in November 2024 Under accrual accounting, when should the $300k be recorded as revenue?
ANSWER: November 2024
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Accrual basis accounting example #3
A payroll period from December 25, 2024 to January 7, 2025 is paid to employees on January 8, 2025. Under accrual accounting, does the Casino have a liability to recognize as of December 31, 2024?
ANSWER: Yes, accrue 50% of the total payroll amount
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