Answer:
a. Groupo sells goods to MTN for $1,000,000, payment due at delivery.
- transaction price = $1,000,000
- revenue recognized once the goods are delivered
No journal entry is required until goods are delivered and accepted.
b. Groupo sells goods on account to Grifols for $800,000, payment due in 30 days.
- transaction price = $800,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Accounts receivable 800,000
Cr Sales revenue 800,000
c. Groupo sells goods to Magnus for $500,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $464,000.
- transaction price = $480,000
- revenue recognized immediately since goods were already delivered
The journal entry:
Dr Notes receivable 500,000
Cr Sales revenue 480,000
Cr Discount on notes receivable 20,000
<span>For 2 nights cost is $10,000 for theater rental, insurance, and musicians. 10% of $10,000 is $1000 that goes to theater if $10,000 worth of ticket is sold, which is to break even. Now the break even cost is $10,000+$1000= $11,000. Cost of one ticket is $10, to break even the total cost, number of tickets that must sell is $11,000 divided by $10, which is 1100 tickets. 1100 tickets must sell in total for two nights to break even.</span>
Answer:
B) Millcorp has a lawful innocent acquisition of a monopoly.
Answer:
a
Explanation:
Property risk is an example of a pure risk.
Pure risks are risks in which loss is the only possible outcome. It could be full loss or partial loss. Other examples of pure risks are personal and liability risks
Property risk is the risk that a person or company's property would be damaged or lost.
For example, if a building is set on fire or if a car is stolen
Instrumentality.
Since Rick believes that working hard will result in better incentives and his attitude towards these incentives is not known, we can say that in the context of expectancy theory of motivation, that this scenario best reflects the factor of <u>instrumentality</u>.
Vroom's expectancy theory of motivation attempts to explain that people choose to perform certain actions over other in a manner that aims to maximize pleasure and reduce pain to lowest possible extent.
There are three factors that affect motivation : expectancy, instrumentality and valence.
Expectancy : refers to the belief of working harder with the expectation of attaining the goals set within an organization.
Instrumentality : refers to the belief that one will be rewarded if certain goals are met. These rewards may take the form of increased wages, recognition, increased incentives etc.
Valence: refers to the value attached by the worker to the reward that has been attained.
