On March 15, Luxurious Landscapers Enters into a Contract with Direct

Essay

On March 15, Luxurious Landscapers enters into a contract with Direct Insurance Brokers to provide landscaping services for the spring and summer season. The contract is to begin on May 1 and terminate on October 31. Luxurious will provide weekly landscaping services during this period. The entire value of the contract is $7,200 for 6 months, to be paid monthly on the first day of each month. Luxurious Landscapers uses the contract-based approach for revenue recognition.
Instructions
a) Determine if there is a contract between Luxurious Landscapers and Direct Insurance Brokers.
b) If there is a contract, record Luxurious' entries related to these transactions for the month of May.