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Fiesta28 [93]
3 years ago
5

Colbert operates a catering service on the accrual method. In November of year 1 Colbert received a payment of $9,000 for 18 mon

ths of catering services to be rendered from December 1st of year 1 through May 31st of year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?
Business
1 answer:
Shalnov [3]3 years ago
6 0

Answer:

b) $500 is recognized in year 1 and $8,500 in year 2.

Explanation:

The calculation is shown below:

Since the payment is received for 18 months of $9,000

So for one month, the payment is

= $9,000 ÷ 18 months

= $500

This $500 should be recognized in year 1 and the remaining amount i.e

= $9,000 - $500

= $8,500

This $8,500 should be recognized in year 2

Hence, b option is correct

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On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci
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Answer:

The description for problem is listed throughout the section there on the explanations.

Explanation:

(A)...

(1) Prepare your entry in the report to document the bonds issuance.

To track or record bond issues, debit card wallet, debit discount, including credit bond liable as seen below:

Date                  Account title                     Debit                Credit

1st Jan                    Cash                           $9594415                  -

                 Bond payable discount          $405585  

                                Payable bond                              $10000000

(2) Arrange the entry to report the first half yearly interest payment

For report semi-annual interest charges, departmental interest cost, credit discounts on bonds payable as well as credit cash as can be seen here:

Date                  Account title                     Debit                Credit

30th June       Interest expense               $390559                   -

                  Bond payable discount                -                 $40559

                 Cash (10000000×3.5%)                                 $350000

(3) Arrange the entry to report the Second half yearly interest payment

For report semi-annual interest charges, departmental interest cost, credit discounts on bonds payable as well as credit cash as can be seen here:

Date                  Account title                     Debit                Credit

31st Dec       Interest expense                  $390559                   -

                  Bond payable discount                -                  $40559

                             Cash                                                    $350000

(B)...

Evaluate the sum of first year bond interest.

Particulars                                                        Amounts

Interest expense (350000+350000)             $700,000

Amortized discount (40559+40559)                $81,117

For the first year, Interest expense                  $781,117

(C)...

The corporation sold the bond for $9,594,415 with a maximum interest of $10,000,000. That would be the $405,585 bond is sold cheaply. The debt are heavily discounted because bond market value is greater than that of the coupon price mostly on debt.

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3 years ago
Robert Solis is a salesman in a company that specializes in event management. He uses the Internet to identify potential compani
TiliK225 [7]

Answer:

B

Explanation:

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3 years ago
Raymond Cattell's Personality Factor Questionnaire can be used to
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<span>The correct answer is letter (A). Raymond Cattell's Personality Factor Questionnaire can be used to "predict an individual's behavior." Raymond Bernard Cattell was an American and British psychologist who is know of its intrapersonal psychological structure and exploration to different areas of empirical psychology.</span>
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3 years ago
Read 2 more answers
You are given the following information about equipment that is required for your business. Assume that the equipment will be re
s2008m [1.1K]

Answer:

Machine B EAC is $17,705.78 more than Machine A EAC.

Explanation:

First find the present values of the cost of both machines.

Machine A:

= 200,000 + (15,000 * Present value of annuity interest factor, 15%, 8 years)

= 200,000 + ( 15,000 * 4.4873)

= $‭267,309.5‬0

Machine B

= 300,000 + (17,500 * Present value of annuity interest factor, 15%, 10 years)

= 300,000 + 17,500 * 5.0188

= $‭387,829‬

Equivalent Annual cost Machine A:

= [(NPV * Required return) / 1 - (1 + Required return) ^–Number of Periods

=[(267,309.50 * 15%) / 1 - 1.15⁻⁸

= $59,569.95

Equivalent Annual cost Machine B:

= (387,829 * 15%) / (1 - 1.15⁻¹⁰)

= $77,275.73

Difference:

= 77,275.73 - 59,569.95

= $‭17,705.78‬

4 0
3 years ago
Which of the following are criteria for determining whether to record an asset as a fixed asset? a.must be short-lived and tangi
Brut [27]

Answer:

The correct answer is letter "D": must be long-lived and used by the company in its normal operations.

Explanation:

Fixed assets are tangible resources used by a corporation to produce profits. To qualify as a fixed asset, the item can not be consumed or sold in less than one year and be part of the daily operations of the business. Fixed assets are listed on the balance sheet of the company and are subject to depreciation.

Examples of fixed assets include <em>buildings, factories, leasehold improvements, computers, electronic hardware, furniture, automobiles, </em>and <em>construction equipment.</em>

5 0
3 years ago
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