Multiple Choice
Wave Inn is a resort located in Canada.During December 2011 Wave Inn collects $120,000 cash related to a conference booked by the Spin Jammers.The conference is scheduled for February 12 and 13, 2012.Which of the following is true regarding how this transaction is reported on the December 31, 2011 statement of financial position?
A) Spin Jammers reports unearned revenue of $120,000.
B) Wave Inn reports a prepaid asset of $120,000.
C) Wave Inn reports unearned revenue of $120,000.
D) All of the choices are correct regarding this transaction.
Correct Answer:
Verified
Correct Answer:
Verified
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