Answer:
1) total sales revenue = $120,000
this amount holds regardless of how much money was collected in cash or if an account/note receivable was recorded
2) the company must recognize interest revenue:
principal = $72,000
interest revenue = $72,000 x 10% x 40/360 days = $800
Dr Interest receivable 8000
Cr Interest revenue 800
Answer:
$8 million
Explanation:
Weighted-average cost = [(4,000,000 × $22) + (2,000,000 × $25)] ÷ (4,000,000 + 2,000,000) = $23
Increase in paid-in capital - share repurchase per share = selling price —Weighted-average cost = $27 - $23 = $4
Amount of increase in paid-in capital—share repurchase = Number of treasury shares × $4 = 2 million × $4 = $8 million
Therefore, Cox’s paid-in capital - share repurchase will increase by $8 million.
Answer:
d. $9,000; $9,000
Explanation:
As cash received on January 1 in advance to provide service in one year which is completed on December 31. So all the Unearned revenue is recognized because service for 12 month has been performed so whole amount will be reported in Income statement for the year ended December 31. Only cash received is from the service revenue activity so, it is also reported as $9,000. correct option is d. $9,000; $9,000.
Suppose that Ray-Ban is considering a new line of sunglasses that would be sold in major department
stores. The new line would be positioned as a more distinctive brand than the typical glasses sold
through department stores, and would be priced higher than other brands in the store, but a lower price
line than the current Ray-Ban lines that are sold through more selective stores. In determining the price
for this sunglass line, Ray-Ban wants to gather information about all brands sold in department stores
<span>and about customers' perceptions of those brands.
</span><span>Given Ray-Ban's plan for positioning the new sunglass line, they should use a <span>price skimming strategy when introducing their new product.
</span></span><span>Price skimming is a pricing strategy in which a marketer sets a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.</span>
