Clean Sweep Contracted to Clean an Office Building in May

question 15

Essay

Clean Sweep contracted to clean an office building in May for $2,000.The work was completed in May and Clean Sweep received a payment of $1,800.The second payment was received in June.How were these events reported on the May 31 financial statements?

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Definitions:

Strict Liability

A legal principle where a party is held responsible for damages or loss regardless of fault or intent, typically applied in cases involving inherently hazardous activities.

Foreseen Danger

A risk or hazard that was known or could have been anticipated prior to an event.

Poisonous Snake

A snake species that has venom which is harmful or fatal to humans and other animals upon biting.

Confinement

The state of being restricted or limited within certain boundaries.