For years I handled the recognized/deferred income by using Recurring Invoices to calculate the monthly recognized income. I just found the QB Revenue Recognition option, and I think I've figured out how to work it., The journal entry to recognize the monthly accrual related to the lease will include a debit to: A) short-term lease expense. B) accrued lease expense. C) leased equipment. D) interest expense. A) short-term lease expense. Blume Corporation leases equipment for a ten-month period., CENTRAL TREASURY, CONTINUED Journal Entries Problem: While reviewing the month’s transactions you discover an expenditure in the General Fund that should have been in the Water Fund. Write the journal entry to correct the error., The FASB’s ASU 2014-09 provides a robust framework for addressing revenue recognition issues, and upon its effective date, replaced almost all pre-existing revenue recognition guidance in current U.S. GAAP (i.e., legacy GAAP), including industry-specific guidance and SAB Topic 13 (which is also part of legacy GAAP for public entities)., Under ASC 718, the fair value of stock-based compensation is recognized over the employee's requisite service period. This section discusses the determination of the grant date, service inception date, and requisite service period, expense attribution and how to account for changes in the requisite service period., What is the contract term for purposes of applying the revenue standard? Analysis. The contract should be treated as a month-to-month contract despite the three-year stated term. The parties do not have enforceable rights and obligations beyond the month (or months) of services already provided..