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Kitty [74]
3 years ago
11

A local theater company sells 1,500 season ticket packages at a price of $250 per package. The first show in the 10-show season

starts this week. (a) The sale of the season tickets before the first show. (b) The revenue from fulfilling the performance obligation by putting on the first show.
Business
1 answer:
swat323 years ago
4 0

Answer:

Dr cash    $375,000

Cr unearned revenue      $375,000

Dr unearned revenue     $37,500

Cr revenue                                    $37,500

Explanation:

The total amount realized from the sale of tickets is  $375,000($250*1500)

However,the cash proceeds should be debited to cash while it is also credited to unearned revenue

The revenue from fulfilling the performance obligation=1/10*$375,000=$37,500

The $37,500 is debited to unearned revenue and credited to sales revenue as that amount has now been earned

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Airborne Airlines Inc. has a $1,000 par value bond outstanding with 20 years to maturity. The bond carries an annual interest pa
ivann1987 [24]

Answer:

7.52%

Explanation:

First and foremost ,the yield to maturity on the old issue is computed using the rate formula in excel as calculated below:

=rate(nper,pmt,-pv,fv)

the nper is the number of times the bond would pay annual coupon interest of $106,which is 20 times

pmt is the amount of annual coupon payment which is $106

pv is the current price of the bond at $860

fv is the face value of the bond at $1000

=rate(20,106,-860,1000)=12.54%

The yield to maturity on the new issue is 12.54%  as well

after-tax cost of debt=pretax cost of debt*(1-t)

pretax cost of debt is yield to maturity of 12.54%

t is the tax rate of 40% or 0.4

after-tax cost of debt=12.54% *(1-0.4)=7.52%

5 0
3 years ago
The following information relates to Conejo Corporation for last year: Book value per share $ 40 Par value per share $ 12 Divide
Ede4ka [16]

Answer:

price earning ratio = 2

Explanation:

given data

Book value = $40 per share

Par value = $12 per share

Dividends =  $5 per share

Dividend payout ratio = 20 %  

Dividend yield ratio =  10 %

solution

first we get here market price per share by dividend yield ratio that is express as

dividend yield ratio = Dividends per share ÷ market price per share    ........................1

put here value we get

market price per share = \frac{5}{0.10}

market price per share = $50

and

now we get earning per share  by dividend payout ratio that is express as

dividend payout ratio  = dividend per share ÷  earning per share    .................................2

put here value we get

earning per share  = \frac{5}{0.20}

earning per share  = $25

so now we get here price earning ratio that is

price earning ratio = market price per share ÷ earning per share ..........................3

put here value we get

price earning ratio = \frac{50}{25}

price earning ratio = 2

4 0
3 years ago
When choosing a savings account to open, you should look for:
Damm [24]

Answer: A higher interest rate.

Explanation: Most savings accounts do not have a high interest rate at the moment.

6 0
3 years ago
Knowledge Check 01 Which of the following is a correct statement regarding control of over-the-counter cash receipts: multiple c
nevsk [136]

Answer: The supervisor should compare the register transactions with the cash receipts report to make sure that both are correct.

Explanation:

The cash register shows the actual amount of money that is collected by the business during the day and the cash receipts journal records the cash collected.

There is therefore a need to ensure that these two tally up as a control method. The supervisors should therefore check for this and if they find that these two are not the same, it means that there is an error somewhere that needs to be rectified.

4 0
2 years ago
A business goes to the trouble and expense of segmenting _________.a. its markets when its customers are dissatisfied. b. it exp
malfutka [58]

Answer:

b. it expects that this will increase sales and profits

Explanation:

6 0
3 years ago
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