Answer:
1. 2
2. Journal Entry
3. Journal Entry
Explanation:
1. There are 2 number performance obligations in this contract.
2. Cash Dr, $95,000
To unearned sales revenue $93,100
To unearned discounted sales revenue $1,900
(Being unearned revenue is recorded)
Working Note:-
Sales revenue = 5,000 × $19.6
= $98,000
Coupon applied = $20,000 × (25% - 5%) × 50%
= $2,000
Sales revenue including discount
= $98,000 + ($20,000 × 20% × 50%)
= $100,000
Discount on sales
= $95,000 × ($2,000 ÷ $100,000)
= $1,900
3. Cash Dr, $95,000
To Unearned sales revenue $95,000
(Being unearned revenue is recorded)
Answer:
The benefits of a High Speed Rail in California:
- It becomes a feasible alternative to air travel, because it can be either cheaper, or even faster, since passengers do not have to spend as much time on a train station as they do on an airport.
- If demand is high enough, state highways can become less congested, because many people who would otherwise travel by car, would take a high speed train instead.
- Because the trains are electric, they are likely to help reduce pollution.
The cons would be:
- We cannot know for sure how many people would take the high speed trains. Demand could not be high enough to justify the cost.
- The line would be very costly.
- It could end up benefit only a small section of the population who would take the trains, or who travel often.
I believe that the benefits outweigh the drawbacks, as can be seen in most countries where high speed lines have been made between large cities. For example, in Spain, the line between Madrid and Barcelona is profitable. The same would likely happen for a line between Los Angeles and San Francisco.
What are the implications of starting a project based on tenuous projections that may or may not come true 10 years from now?
If demand projections are tenous, there is always the possiblity that the high speed line could not be profitable. However, this risk can be lowered if the line is made between highly populated cities.
Could you justify the California high-speed rail project from the perspective of a massive public works initiative?
Yes, a high speed rail would be a project that could massively impact California. The benefits of its operation could outweight the cost.
In other words, what other factors enter into the decision of whether to pursue a high-speed rail project?
As I said before, the most important factor is to construct line between highly populated cities in order to reduce the risk of not having enough demand. It has been demonstrated around the world, in Spain, in Italy, in Japan, in China, that high speed lines that connect very populated regions, can be profitable.
The term that is being referred to the description is CORE CUSTOMER VALUE. The core customer value is a marketing term that describes the fundamental benefits of problem solving that consumers are looking for. The customer value are classified into two and these are the perceived and the desired value.
