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xenn [34]
3 years ago
11

Gomez Company collected $19,200 on September 1, Year 1 from a customer for services to be provided over a one-year period beginn

ing on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1?
Business
1 answer:
Ksenya-84 [330]3 years ago
5 0

Answer:

$6,400

Explanation:

On December 31, year 1, 4 months has been passed so, the revenue of 4 months should be recognized at this date. The payment was recorded as unearned revenue on September 1 using following entry.

September 1,

Dr. Cash                            $19,200

Cr. Unearned Revenue    $19,200

The revenue account will be credited by the 4 months revenue amount and unearned revenue account will be debited to reduce the amount by the four month accrual.

Total Unearned revenue = $19,200

Revenue for four months = $19,200 x 4/12 = $6,400

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Consumer surplus is A. the difference between the highest price a consumer is willing to pay and the price the consumer actually
ss7ja [257]

Answer is A

Explanation: Consumer surplus actually happens when a customer is willing and ready to pay for a particular product than its current market price. It is a measure of the additional benefits a consumer gets after paying for a product even though they are willing to pay more.

For example: Let's assume you want to get a IPhone 8 plus and you value it at $800 dollars, which you are ready to pay, but realise it is sold at $700. When you buy it at $700, the customer surplus is $100, that is a difference between how much you were willing to pay and the price you eventually got it.

Consumer Surplus changes as the equilibrium price of a good rises or falls. If the price of a good rises, the consumer surplus decreases but when the price of the good falls, the consumer surplus increases.

3 0
3 years ago
Happy Foods and General Grains both produce similar puffed rice breakfast cereals. For both companies, the cost of producing a b
labwork [276]

Answer: introduce more differentiation

Explanation: Product differentiation is a method of using various tactics to make a product stand out from the rest of the similar products sold by a competitor, in an effort to make it more appealing to its customer base. This means differentiating the product so much, that it will make it more attractive for customers to buy. This can be anything from making the product's packaging more aesthetically appealing, including some form of a bonus/gift for purchasing the product (like getting a free toy in each cereal box) etc. In the end by applying product differentiation the one company will increase the customer benefits of purchasing this product from them, hereby gaining a competitive advantage over the other company.

3 0
3 years ago
Help plsssssssssss drag the names next to the correct statements
nata0808 [166]
The same thing the person above me said:)
3 0
2 years ago
Bernie is a participant in his employer's non-contributory ESOP. Two years ago, his employer contributed stock with a fair marke
vampirchik [111]

Answer:

taxable amount = $10,000

Explanation:

given data

2 year ago fair market value = $30,000

fair market value = $40,000

sold the stock =  $50,000

solution

we get here taxable amount  when ESOP sold

so taxable amount = Selling price - fair market value on distribution  date ...........1

put here value

taxable amount = $50000 - $40000

taxable amount = $10,000 long term capital gain

3 0
3 years ago
Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost fo
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

= $44,990,562

6 0
3 years ago
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