Adkins Company is hired on December 15, 2018 to perform services, beginning on December 16, 2018. Under this agreement, Adkins will earn $4,400 monthly and receive payment on January 15, 2019. What amount of service revenue should be recorded for the year ending December 31, 2018?
A) 0
B) $2,200
C) $4,400
D) There is not enough information to answer this.

Question

Quizplus · Accepted Answer

Adkins Company should record service revenue for the period from December 16 to December 31, 2018, which is half a month. Therefore, the revenue for this period is $4,400 / 2 = $2,200.

Adkins Company Is Hired on December 15, 2018 to Perform