Accounting - the principle of auditing I need to know how you get the answer, please. 1) explain...

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Accounting

Accounting - the principle of auditing
I need to know how you get the answer,please.
1) explain when revenue was earned in each of the followingindependent situations:
a. on a February 28, a farmer went to localseed supply store and ordered 600 Kg of seed and promises topay.
on March 2, the framer was informed that the seeds have arrivedat the seed store. on the same day, the farmer went
to the store, paid for the seed and took it home with him.
When should the seed store recognize revenue from the sale ofseed in its books?
what is the point of sale? explain why?
b. On June 20, 2015, a student sent a $200deposit to University College London(UCL)
ti make sure he will have a place in the college for the yearstarting fall 2015. the (UCL)
has a fiscal year ( financial year) ending June 30. The studentenrolled at UCL on August
15, 2015. when should UCLrecognize the $200 as revenue receivedfrom the student?
What is the point of sale? Explain Why?

Answer & Explanation Solved by verified expert

3.6 Ratings (504 Votes)

a Revenue is recognised when the title to ownership is given to the farmer ie March 2 Point of sale is Local Seed Supply Store where the seeds were ordered Reason Revenue is See Answer

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Accounting - the principle of auditingI need to know how you get the answer,please.1) explain when revenue was earned in each of the followingindependent situations:a. on a February 28, a farmer went to localseed supply store and ordered 600 Kg of seed and promises topay.on March 2, the framer was informed that the seeds have arrivedat the seed store. on the same day, the farmer wentto the store, paid for the seed and took it home with him.When should the seed store recognize revenue from the sale ofseed in its books?what is the point of sale? explain why?b. On June 20, 2015, a student sent a $200deposit to University College London(UCL)ti make sure he will have a place in the college for the yearstarting fall 2015. the (UCL)has a fiscal year ( financial year) ending June 30. The studentenrolled at UCL on August15, 2015. when should UCLrecognize the $200 as revenue receivedfrom the student?What is the point of sale? Explain Why?