Discuss the leverage and risk aspects of each structure.

A company billed a client for services performed on January 10. The customer paid one-half of the amount owed on January 20 and

snow_tiger [21]

Answer:

January 10

Explanation:

According to the revenue recognition principle of accrual accounting, revenue must be recognized when the earning process is completed. In this case, the earning process was completed on January 10 when the services were performed. The related cash inflows are not relevant at the time of considering service revenue.

the journal entries should be:

January 10, 202x

Dr Accounts receivable XY

Cr Service revenue XY

January 20, 202x

Dr Cash 0.5XY

Cr Accounts receivable 0.5XY

February 24, 202x

Dr Cash 0.5XY

Cr Accounts receivable 0.5XY

7 0

3 years ago

The following information relates to the intangible assets of University Testing Services (UTS): a. On January 1, 2018, UTS comp

OverLord2011 [107]

Solution:

Question #1:

Record amortisation expense for the intangible assets at December 31, 2018.

UTS acquired a franchise on July 1, 2012, by paying an initial franchise fee of $333,000. The contractual life of the franchise is 9 years.

Dr Amortization expense - franchise 18,500 ($333,000/9 years x 6/12)

Cr Franchise 18,500

Question #2: Prepare the intangible asset section of the December 31, 2018, balance sheet.

The balance sheet contains 3 blanks: Goodwill, patents, Franchises.

Goodwill

Excess of consideration over net identifiable assets of Heinrich: $3,510,000- $3,200,000= $310,000.

Goodwill from a business combination is not amortized but tested annually for impairment.

Patents

Patents are amortized over the shorter of the legal and useful lives.

Amortization expense = $82,250/7 years = $11,750

Book value = 82,250 - 11,750 = 70,500

Franchises

Book value = $333,000- 18,500 = $314,500

intangible asset section of the December 31, 2018, balance sheet

Goodwill $310,000

Patents 70,500

Franchises 314,500

Total $695,000

4 0

4 years ago

Structural unemployment is caused bya. short-term changes in the economy.b. temporary layoffs in industries such as construction

Gre4nikov [31]

Answer:

Consider the following explanation

Explanation:

1. Option C.

Structural unemployment is a type of unemployment which occurs naturally when the economy shifts in time.

This forces certain job skills to become obsolete, due to which mismatch of skills and the jobs available in the economy.

Many workers are also laid off as their jobs no longer match their current skills.

2. Option D.

A laffer curve is a curve which shows a relationship between the taxes imposed within an economy and the tax revenues collected from the imposed taxes.

Above the optimal tax rate, a reduction in tax rates along the downward sloping portion of the laffer curve would increase the tax revenue's.

7 0

3 years ago

Jocelyn contributes land with a basis of $60,000 and fair market value of $90,000 and inventory with a basis of $5,000 and fair

Natali5045456 [20]

Answer: $50,000

Explanation:

Based on the scenario in the question, Jocelyn's basis in the property contributed will be:

Land = $60,000

Inventory = $5,000

Total = $65,000

We are told that the exchange is tax-free, hence, Jocelyn has income of $0.

Therefore, Jocelyn’s basis in Zion’s Corporation stock will be her original basis in property contributed which is $65,000 plus the gain of $0 and then we deduct the liability that was assumed by the corporation which $15,000. This will now be:

= $65,000 + 0 - $15,000

=$50,000

3 0

3 years ago

The Anytime Gym is launching new services to attract more customers. They offer a variety of fitness equipment, and are now offe

Vladimir79 [104]

Answer:

B. Fitness equipment.

Explanation:

The core business of Anytime gym is fitness equipments. It is the main or essential activity of the Anytime gym business as it is what improves customer value and drive profits.

Generally the core business activity of Anytime Gym refers to the key activity of the enterprise.

Core business activity contains a clear company identity, in this case the name Anytime gym suggests that the business is involved in gym activities and what stand for.

8 0

3 years ago