The Following Activities Took Place During the Month of July

question 162

Essay

The following activities took place during the month of July at a corporation that earns service revenue as a law firm.
1.The law firm completes legal work relating to a real estate transaction and is paid $5,500 when the papers are signed.
2.Legal work in the amount of $26,000 is performed on account for customers.
3.A customer makes a payment of $2,500 on account for legal services that were performed last month.
4.A new client calls to request assistance in filing the documents for a patent; a fee of $3,000 is paid and the parties agree that the work will commence next month.
5.A client pays a retainer (deposit)of $15,000 for legal work; one-third of the work is performed in the current month and the remainder will be provided over the next two months.
6.The law firm borrows $10,000 from a local bank.
Required:
For each activity,indicate the amount of revenue that would be recorded in July.

---

Definitions:

Legitimate Power

A type of power that is recognized and accepted by the society or organization in which it operates, often derived from a formal position or role.

Tacit Power

Unspoken, yet understood authority or influence that individuals or groups may hold, often derived from social positions or relationships.

Legal-Rational Authority

Is typical of modern societies. It derives from respect for the law. Laws specify how a person can achieve office. People generally believe laws are rational. If someone achieves office by following laws, people respect his or her authority.

Pierre Elliott Trudeau

A former Prime Minister of Canada known for his charismatic leadership, implementation of the Official Languages Act, and promotion of Canadian unity.