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Southeastern University Meaning of Revenue Recognition Principle Questions


Need help with my Accounting question – I’m studying for my class.

Q1: Bello Co. is an event organizer business. Bello was established in 2018. You are provided with the following financial statement with some missing values for the years 2018, 2019 and 2020. You are requested to complete those statements. In order to solve the question you have to start with 2018 statements and work forward to subsequent years. Remember that Bello was established in 2018, thus the beginning balance for retained earnings in 2018 is zero.

Q2: Come up with a scenario for a service business. Then, assume that this business made 5 transactions. Journalize those transactions. (2 Marks)

Q3: In your own words, describe the meaning of Revenue Recognition Principle.


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