Allen Company is hired on December 15, 2016 to perform servi

Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016. Under this agreement, Allen will earn $4,500 monthly and receive payment on January 15, 2017

What amount of service revenue should be recorded for the year ending December 31, 2016?
A) 0
B) $2,250
C) $4,500
D) There is not enough information to answer this.

ANSWER

B .Allen has earned revenue from December 16 – December 31, 2016. $4,500 / 2 = $2,250