Answer:
a) It will accrue revenue through time. As in November 6th it has the obligation to keep the downhill ski open or return the cash
cash 405 debit
unearned reveue 405 credit
--to record sales of season pass--
unearned revenue 81 debit
service revenue 81 credit
--year-end adjustment for accrued revenue--
Income statetent
service revenue 81
Balance sheet
Liaiblities
unearned revneue 324
Explanation:
We must recognize revneue following the acounting pricniples of conservatisim and matching when the time at they occur.
405 is the cost for 5 months (Dec 1st to April 30th)
so 405 / 5 = 81 cost per month
At decmeber 31th we recognize 1 month
ANd this will be the value included in the income statement
Answer:
Option (A) is correct.
Explanation:
If it contracts with a private firm, for 1st contract,
profit = [(2 × 0.25) + (1 × 0.4) - (1 × 0.35)]
= 0.55 million dollars
If it contracts with the government, or second contract
,
profit = ($4 × 0.4) - ($2.5 × 0.6)
= 0.1 million dollars
Therefore, it is clear from the above calculations that the contract with a private will offer more profit as compared to the contract with the government.
Answer: 26.85%
Explanation:
Based on the information given in the question, the firm's cost of internal equity will be calculated as:
Cost of equity = (D1/Current price) + Growth rate
= (4.90 / 26.00) + 8.0%
=(4.9/26) + 0.08
=26.85%
Therefore, the firm's cost of internal equity is 26.85%.
Answer:The new machinery must be depreciated using the same method as the previously purchased Machinery.
Explanation:
This is in line with the consistent concept which states a company must be consistent in the application of accounting principles to his activities.
4- your mother buys flour
