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givi [52]
3 years ago
15

On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Ger

akos sells the same software without technical support for $60,000. It does not sell technical support separately. Gerakos uses the residual method to allocate the transaction price.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

The question requirement relates to the amount of revenue to be recognized in year 2019 and 2020 respectively.

2019 Revenue is $66,667

2020 Revenue $13,333

Explanation:

The total price of $80,000 is split into $60,000 which is standalone  price of the software and the balance relates of $20,000($80,000-$60,000) relates to technical support.

It is important to note that the selling price of software of $60,000 is due for recognition as revenue, while technical support fee of $20000 should be recognized on a progress basis,for each month the technical support has been rendered.

2019 Revenue

Software                                                 $60,000

Technical support($20000*2/6)             $6,667

Total                                                         $66,667

2020 Revenue

($80,000-$66,667)                                  $13,333

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7nadin3 [17]

The four benefits of international strategies are increased the market size. The initial step in most organizations global development plans is typically an international strategy. The most effective technique is transnational, but it's also the most complicated in terms of the interactions and communications.

There is no one method that works for all the business ventures that involve global development. The emphasis on efficiency and low cost, as well as meeting cultural and societal needs locally, influence how these tactics are the different. International multi-domestic, global, and transnational are the four fundamental international strategies that multinational firms can choose from.

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3 0
1 year ago
Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on deposit at the close of busi
zaharov [31]

Answer:

Cash account reconciliation:

Cash account balance                                $27,700

subtract bank fees                                           ($110)

subtract NSF check                                  <u>     ($580)</u>

Reconciled balance                                    $27,010

Bank account reconciliation:

Bank account balance                               $26,000

subtract outstanding checks                     ($5,700)

add deposits in transit                                 $6,300

add error with Smith Company check    <u>        $410</u>

Reconciled balance                                    $27,010

5 0
3 years ago
JG Asset Services is recommending that you invest $1,275 in a 5-year certificate of deposit (CD) that pays 3.5% interest, compou
ArbitrLikvidat [17]

Answer:

The amount that will be received when CD matures is $1514.30

Explanation:

To calculate the amount that will be received at the maturity of the CD, we simply need to calculate the future value of the invested amount using annual compounding. The formula for the future value that we will use is,

Future value = Present value * (1+r)^t

Where,

  • r is the rate of interest
  • t is the time in years

Future value = 1275 * (1+0.035)^5

Future value = $1514.30

5 0
3 years ago
Patterson Corporation began the year with retained earnings of $325,000. During the year, the company issued $500,000 of common
timofeeve [1]

Answer:

$1,615,000

Explanation:

total revenue for the year can be calculated by adding retained earnings (at end of the year) + distributed dividends + total expenses - retained earnings (at the beginning of the year)

total revenue = $350,000 + $90,000 + $1,500,000 - $325,000 = $1,615,000

7 0
3 years ago
Suppose the government passes a law eliminating holidays and, as a result the production of goods and services increases because
dedylja [7]

Answer:

The correct answer is GDP would definitely increase because GDP excludes leisure.

Explanation:

The GDP does not measure the level of development of a country, nor does it measure the quality or level of its educational system or its health. Come on, that the quality of life in general is not measurable by GDP, although it is true that countries with a higher GDP per capita can afford better health or education services, as well as better infrastructure and services in general.

It does not measure the state of the environment or the damage caused to it or natural resources by the economic activity carried out. In other words, GDP does not report externalities, that is, it does not reflect the total social benefits and costs derived from economic activity.

GDP does not measure the quality of the goods and services produced. The GDP figures are only numbers that do not take into account exactly what is being produced or what is the quality of what is produced. This prevents, for example, comparing production between different eras. Does a computer add up to GDP now than in the 80s? The answer is no. Does a country of services add up to an oil exporter? The answer is also no.

It ignores the value of elements that contribute to maintaining the level of well-being of the population, such as leisure or freedom. In freer countries or in which its inhabitants have more leisure time and better options in which to invest it, well-being is much greater.

6 0
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