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devlian [24]
3 years ago
11

sells subscriptions for $ 120 for 30 issues. The company collects cash in advance and then mails out the magazines to subscriber

s each month. Apply the revenue recognition principle to determine a. when Boston Magazine should record revenue for this situation. b. the amount of revenue Boston Magazine should record for seven issues. a. Boston Magazine should record revenue when ▼ the subscribers. b. Boston Magazine should record $ 28 for seven issues.
Business
1 answer:
s344n2d4d5 [400]3 years ago
3 0

Answer:

Boston Magazine should record revenue when the magazines are delivered  to the subscribers

Boston Magazine should record $28 for seven issues

Explanation:

Revenue should recognized when earned and not when it is received.It is earned when the seller fulfills his obligation by delivering the promised good or service to the buyer.

Hence, the revenue received in  advance should be credited to revenue received in advance account until it is earned

The cost per issue of magazine is $4 ($120/30),so as a result,seven issues would be $28($4*7)

The double to record the seven issues is as follows:

Dr Revenue in advance $28

Cr Revenue                            $28

Henceforth,the value of magazines delivered each is debited to revenue in advance and credited to revenue to show the amount of revenue earned each month

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Jerrod owes $2000 on a credit card that charges him an annual percentage rate of 18%. If jerrod stopped making payments, how lon
sp2606 [1]

It will take Jerrod 4 Years and 2 months to get his balance on his credit card $4000

In this question, it is stated that Jerrod owes $2000 on a credit card that charges him an Annual interest of 18%. If he stops making payments we have to find out how much time will it take for Jerrod to get his credit card balance to $4000.

Taking the annual interest rate of 18%,

first year's due payment will be => 2000 + (18*2000)/100 = $2360

Similarly, second year's due payment => 2360 + (18*2360)/100 = $2784.80

third year, the due payment will be => 2784.80 + (18*2784.80)/100  = $3286

Forth year, due payment => 3286 + (18*3286)/100 = 3877.48

At the beginning of the fifth year approximately 2 months the due payment will reach $4000.

Hence, it will take 4 years and 2 months for the amount to reach $4000.

To know more about Interest Calculation, Click here:

brainly.com/question/6956078

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7 0
1 year ago
erekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,200 machine-hours V
kvasek [131]

Answer:

Variable overhead= $44,330

Fixed overhead= $29,600

Total overhead= $73,930

Explanation:

Giving the following information:

Total variable overhead= $45,760

Total fixed overhead= $29,600

Total overhead cost= $75,360

<u>First, we need to calculate the  variable predetermined overhead rate:</u>

Variable predetermined overhead rate= 45,760/3,200= $14.3 per machine hour

<u>Now, for 3,100 hours:</u>

Variable overhead= 14.3*3,100= $44,330

Fixed overhead= $29,600

Total overhead= $73,930

6 0
3 years ago
when the fed buys government bonds, group of answer choices the money supply decreases and the federal funds rate decreases. the
faust18 [17]

The Fed's open market bond purchases will increase the money supply. If it sells bonds on the open market, the amount of money in circulation will fall.

<h3>What is the process of Open Market Operations?</h3>

This is why. The Fed purchases a Treasury bond from one of its principal dealers when it makes a bond purchase. One of the 23 financial institutions authorized to do business with the Fed is included. These dealers regularly deal in government bonds and regard the Fed as a regular client. It is important to note that the government issued the bonds that are being sold on the secondary open market months or years ago, and they won't mature for another few months or years.

To learn more about Open Market Operations refer to:

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5 0
1 year ago
Yan Yan Corp. has a $3,000 par value bond outstanding with a coupon rate of 5.2 percent paid semiannually and 25 years to maturi
Talja [164]

Answer:

$3,173.63

Explanation:

For computing the price of the bond we need to apply the present value i.e to be shown in the attachment

Given that,  

Future value = $3,000

Rate of interest = 4.8% ÷ 2 = 2.4%

NPER = 25 years × 2 = 50 years

PMT = $3,000 × 5.2% ÷ 2  = $78

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the price of the bond is $3,713.63

4 0
3 years ago
High Mountain Lumber (HML) has normal budgeted overhead costs of $115,150 and a normal capacity of 35,000 direct labor hours for
Furkat [3]

Answer:

                                                                                                 $

Standard total overhead cost (0.5 hr x 25,000 x $3.29) 41,125

Less: Actual total overhead cost ($21,000 + $18,000)    39,000

Total overhead variance                                                      2,125(F)

                                           

Standard overhead application rate

= <u>Budgeted overhead</u>

  Budgeted direct labour hours

= <u>$115,150</u>

   35,000 hours

= $3.29 per direct labour hour

Explanation:

Total overhead variance is the difference between standard total overhead cost and actual total overhead cost. Standard total overhead cost is the product of standard hours per unit, standard overhead application rate and actual output produced. Actual total overhead cost is the aggregate of actual variable overhead cost and actual fixed overhead cost. Standard overhead application rate is the ratio of budgeted overhead to budgeted direct labour hours (normal capacity).

6 0
3 years ago
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