Answer:
Explanation:
so u want the definition of what?
Answer:
a. they are separate performance obligations
normal price of annual membership = $1,140
one yer enrollment in yoga = $600 x (30% - 10%) = $120 x 50% = $60
total $1,200
% of price allocated to:
annual membership = ($1,140 / $1,200) x $1,100 = $1,045
discount voucher = $1,100 - $1,045 = $55
b. the journal entry should be
Dr Cash 1,100
Cr Unearned revenue, membership fees 1,045
Cr Unearned revenue, discount voucher 55
Answer:
12 months
Explanation:
The fiscal or financial period of a business lasts for 12 months or one year. It means that at the end of that 12 months, the business prepares its financial statement to determine its profitability. The business assesses its growth, success, and failure for the period.
After evaluating performance, planning for the next period of 12 months begins. The entrepreneur prepares a budget for the year, including their compensation. Compensation for the entrepreneur should be budgeted and reviewed every year together with the other budget items.
Answer:
The security is worth $30,570.77.-
Explanation:
Giving the following information:
Annual payment (3 to 9)= $7,000
Interest rate= 5.1%
<u>First, we need to determine the value of the security 3 years from now:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual payment
FV= {7,000*[(1.051^6) - 1]} / 0.051
FV= $47,833.35
PV= FV/(1+i)^n
PV= 47,833.35 / 1.051^6
PV= $35,490.70
The value of the security in 3 years is $35,490.70.
<u>Now, the present value:</u>
PV= 35,490.70 / 1.051^3
PV= $30,570.77
The security is worth $30,570.77.-
Answer:
The answer is:
Dr Unearned rental revenue $15,000
Cr Rental Revenue $15,000
Explanation:
According to the revenue recognition principle, Videobusters should only recognize revenue when it has substantially completed the earnings process. So the $20,000 it received from selling rental coupons should be credited to Unearned rental revenue. But after $15,000 worth of coupons were actually used to rent videos, then they should change $15,000 to earned revenue. They should do this by debiting Unearned rental revenue and crediting rental revenue.
