Question

Mary signed up and paid $1,320 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplets accounting records would indicate:

Answer 1

$300 of revenue, $600 of deferred revenue. (900* 2/6 of contract) = 300
(900 contract price paid in advance -$300 revenue recognized to date) =600