Answer:
months quicker = 91 months - 62 months = 29 months
Explanation:
using a financial calculator
SET calculator to a 12 months interval payments
PV = -$10.900, r= 17.1%, FV=0, ,PMT = $215
COMPUTE N?
N= 90.58 ≈ 91 months
Raise and new pmt =265
N=62.35≈62 Months
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
<span>Auto insurance is needed primarily because of </span>potential liability claims.
If you don't have it and you don't have insurance, you have to fix your car out of your own money, as well as pay for repairs of other cars if it is proven that it was your fault.
Answer:
Purchase discounts is a contra revenue account. Revenue accounts carry a natural credit balance; purchase discounts has a debit balance as a contra account. On the income statement, purchase discounts goes just below the sales revenue account.
D) All of the above because they all go through a process called “transferring” which means connecting to someone else’s device through WiFi and transferring payments through there.
