Posted On: 04/16/2015 11:01:12 AM
Post# of 1850
its confusing as written-they should've clarified cash basis-if so- really no income as of dec 31 if cash basis
should've said explicitly -rather than having to rely solely on fin statements to see its an accounts receivable- unless they said that also -
'we are reporting income for the sale of 1st parcel of $12490 as a subsequent event (after dec 31) since actual cash income for said parcel was received after dec 31 and thus the 1st shipment is reported as an account receivable as of dec 31
For the same reason- our cash accounting basis- revenue for the 2nd parcel wont be shown until qtr 2 because payment for said parcel was not received during qtr 1- and thus is an account receivable for qtr 1''
Instead they somewhat confusingly said:
'We earned other income during the year ended December 31, 2014 for the shipment of our first parcel of diamonds in the amount of $12,490. No revenue was earned for the year ended December 31, 2014.'
should've said explicitly -rather than having to rely solely on fin statements to see its an accounts receivable- unless they said that also -
'we are reporting income for the sale of 1st parcel of $12490 as a subsequent event (after dec 31) since actual cash income for said parcel was received after dec 31 and thus the 1st shipment is reported as an account receivable as of dec 31
For the same reason- our cash accounting basis- revenue for the 2nd parcel wont be shown until qtr 2 because payment for said parcel was not received during qtr 1- and thus is an account receivable for qtr 1''
Instead they somewhat confusingly said:
'We earned other income during the year ended December 31, 2014 for the shipment of our first parcel of diamonds in the amount of $12,490. No revenue was earned for the year ended December 31, 2014.'
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