Revenue and Income

Revenue and Income

Objective

• what is income earned Vs income received ?

• What is income received in advance ?

• What is income receivables ?

• How to calculate income earned ?

• Come up with your own "income earned formula"

Multiple Choice

On 1 January 2021, Jocelin Nails sold a nail package of $500 to Shi yi. Shi yi used the package to pay for treatment costing $250. How much did Jocelin Nails earned ?

• 250

• 500

• 750

Fill in the Blank

On 1 July 2020, Aly telephone bill showed she owed M1 $32. On 1 Aug 2020, Ali's bill showed she owed M1 $45. Aly has forgotten to pay her bill in July. What was the telephone service income earned by M1 from Aly in July ?

Fill in the Blank

On 1 Jan 2021, Luca Tuition's record showed Andi, a student owed $300. On 5 Jan 2021, Andi paid the centre $500. Record on 1 Feb showed Andi still owed them $200 what is Luca Tuition's tuition income earned from Andi in Feb ?

Fill in the Blank

On 1 January 2021, Simple air con received $210 from Lee Trading. The servicing fees are for the period of 3 months from 1 January 2021 to 31 March 2021. As at 31 January 2021, how much service income did Simple air con earn ?

Multiple Select

What is income received in advance ?

• it is amount owed to customer and so, it is a current liability

• deposit collected for future project

• amount of income collected when work is not done yet

• payment collected from customer

• It is a current asset as it is amount gained

Multiple Select

What is income receivables ?

• Amount owed to customers because of work not done

• Amount owed by customer after work has been done

• It is "under-payment" by customer

• It is a current asset like trade receivable

• It is a current liability as it is amount owed

Open Ended

Based on the 3 scenarios, form the income equation with the following format:

Beginning +Payment +ending = Income earned

Remember to use (1) Income received in Advance (A), (2) Income receivables (R)