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Revenue Recognition Journal entries
1. Leons sells you furniture on a “no money down, no interest, and no payments for one year” promotional deal. The furniture is delivered to your home the same day. Prepare the journal entries Leons would enter based on the following events:
a) At time of delivery b) Over the one year term of the loan c) Upon final Payment
2. The Toronto Raptors sell season tickets on-line to games in the Scotia Bank Arena. Fans can purchase the tickets at any time, although the season does not officially begin until April 1. The season runs from April 1 through October each year. Payment is due in full at the time of purchase. Prepare the journal entries the Raptors would enter based on the following events:
a. At time of ticket purchase: b. As each game is played during the season
3. RBC lends you money in October. The loan and interest are repayable in full in two years. Prepare the journal entries CIBC would enter based on the following events:
a. At time loan is provided b. Over the two year loan term c. Upon final payment
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