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3 years ago

Analyzing Unearned Revenue Disclosures

Business

1 answer:

xxMikexx [17]3 years ago

7 0

Answer:

(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?

When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.

(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during 2016 to compute the cash that Costco received during 2016 for membership fees.

beginning membership fees + cash received - membership fee revenue = ending membership fee balance

$1,269 + cash received - $2,646 = $1,362

cash received = $1,362 + $2,646 - $1,269 = $2,739 million

(c) Use the financial statement effects template to show the effect of the cash Costco received during 2016 for membership fees and the recognition of membership fees revenue for 2016.

Use negative signs with answers, when appropriate.

Balance Sheet

Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital

Receive cash in advance for membership fees ⇒ $2,739 + na = $2,739 + na + na

Recognized membership fees earned ⇒ na + na = -$2,646 + na + $2,646

Income Statement

Revenue - Expenses = Net Income

na na na

$2,646 na $2,646

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Answer:

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Explanation:

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2 years ago

Traditionally, department stores almost exclusively offered soft goods. But now, most department stores focus on selling both ha

Studentka2010 [4]

Answer:

False

Explanation:

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3 years ago

Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions o

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Answer:

Apr. 1

Trade Receivable $6,600 (debit)

Sales Revenue $6,600 (credit)

Cost of Sales $3,960 (debit)

Merchandise $3,960 (credit)

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Sales Revenue $740 (debit)

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Trade Receivable $2,800 (debit)

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Explanation:

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Thus, for every sale transaction remember to recognize the Sales Revenue and the Cost of Sales that follow the sale.

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3 years ago

The bank is working to develop an efficient work schedule for full-time and part-time tellers. The schedule must provide for eff

Kitty [74]

Answer:

The solution is given below.

Explanation:

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We use x as full time and y as part time staff.

It would help if you construct a table as shown below to better analyze the problem before attempting to model it. Red shows work hrs of full time staff and green is for part timers. Just follow their work hour rules.

So, full timers have 3 options:

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that’s all… bank closes at 7 pm.

However, part timers don’t have 1 hr break. They work straight 4 hrs and leave. See green cells above to understand their alternatives.

Now, decision variables should include this work hour information. Here goes their definition. You must clearly define decision variables in exam, otherwise, the model is meaningless.

X9 = number of full time staff who start at 9 and follow the hour-related rule (no need to specify more details; those are already undestood)

X10 = number of full time staff who start at 10 and follow the hour-related rule

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Y9 = number of part time staff who start at 9 and follow the hour-related rule

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…. This way you define up to Y15.

You must also specify that:

Xi, Yi >=0, integers.

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constraints are: (attached with image)

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3 years ago