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Bogdan [553]
2 years ago
14

The Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the mem

ber to use the facilities at any time. A one-year membership costs $480 ($480/12 = $40 per month); a two-year membership costs $720 ($720/24 = $30 per month). Cash payment is required at the beginning of the membership period. On July 1, 2017, the company sold a one-year membership and a two-year membership. The company should report as gross income from the two contracts:a. $1,200 in 2017.b. $960 in 2017.c. $180 in 2019.d. $780 in 2018e. None of these.
Business
1 answer:
SashulF [63]2 years ago
4 0

Answer:

c. $180 in 2019

Explanation:

The company uses the accrual method of accounting. Under the method, revenues are reported on the income statement when they are earned, regardless of when the money is actually received or paid.

On July 1, 2017, the company sold a one-year membership and a two-year membership. In 2017, The Maroon & Orange Gym, Inc. has provided service for 6 months of each contracts.

Gross income of one-year membership in 2017 = $40 x 6 = $240

Gross income of one-year membership in 2017 = $30 x 6 = $180

Total income = $240 + $180 = $420

In 2018, the company continued to provide service for 6 months remaining of one-year membership and 12 months remaining of two-year membership.

Gross income of one-year membership in 2018 = $40 x 6 = $240

Gross income of one-year membership in 2018 = $30 x 12= $360

Total income = $240 + $360 = $600

In 2019, the company completed providing service for 6 months remaining of two-year membership.

Gross income in 2019 = $30 x 6= $180

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The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.

The correct answer is B

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A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.

A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.

A stock with a beta of 0.74 does not provide the highest risk premium.

Us treasury bill does not provide any risk premium since it is the risk-free rate.

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Answer:

<u>d. Material Purchases =  $ 169,000</u>

Explanation:

Cost Of Goods Statement.

Beginning Direct Materials =         $117,000

Add Material Purchases =            $ 169,000

Less Ending Direct Materials =     <u>$130,000 </u>

Direct Materials Used =                 $156,000 ( given)

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Ending WIP Inventory =                 $104,000

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3 years ago
When an organization evaluates people based on the economic or productive potential of their knowledge, experience, and actions
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Answer:

Human Capital.

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When an organization evaluates people based on the economic or productive potential of their knowledge, experience, and actions they are viewing them as human capital which is termed as an intangible asset for any organization but not present on an organization's balance sheet. Human capital is the economic value of the employees skills, expertise and experience which comprises of their training, education, health, intelligence, punctuality, values, ethics, corporate citizenship and loyalty etc.

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3 years ago
Rolland Poust is a sophomore in the College of Business at Scandia Tech. Last semester he took courses in statistics and account
nikklg [1K]

Answer:

3.5

Explanation:

Grade point average (GPA) is the summation of all the numbered grades obtained divided by the number of credits taken or total obtainable points multiply by the maximum point receivable for a course. This can be calculated as follows:

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Statistics = A × hrs = 4 × 3 = 12

Accounting = A × hrs = 4 × 3 = 12

History = A × hrs = 4 × 5 = 20

History of jazz = A × hrs = 4 × 2 = 8

Rules of basketball = A × hrs = 4 × 1 = 4

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2. Calculation of Total Points Obtained

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Accounting = A × hrs = 4 × 3 = 12

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Total Points Obtained = 12 + 12 + 15 + 6 + 4 = 49

3. Calculation of GPA

GPA = (Total Obtained Points ÷ Total Obtainable Points) × the points that A receives (i.e. maximum GPA)

= (49 ÷ 56) × 4

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= 3.50  

Therefore, Rolland Poust's GPA is 3.5 out of 4.

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Grade point average (GPA) is similar to mean because GPA is the summation of all the numbered grades obtained divided by the number of credits taken.

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