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dimulka [17.4K]
3 years ago
12

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

nths 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?
a. $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.
b. $500 is recognized in year 1 and $8,500 in year 2.
c. $9,000 is recognized in year 3.
d. $2,500 is recognized in year 1 and $6,500 in year 2.
e. $9,000 is recognized in year 1.
Business
1 answer:
german3 years ago
8 0

Answer:

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

Explanation:

Calculation to determine When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?

Calculation for amount recognized in year 1

Payment in year 1= $9,000 ÷ 18 months

Payment in year 1= $500

Therefore Based on the above calculation the amount recognized in year 1 will be $500

Calculation for the amount recognized in year 2

Payment in year 2 = $9,000 - $500

Payment in year 2= $8,500

Therefore The amount recognized in year 2 will be $8,500

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The following information pertained to Azur Co. for the year: Price of goods purchased $102,800 Price discounts 10,280 Freight-i
MrRissso [65]

Answer:

$118,220

Explanation:

The Costs of Goods Sold COGS is calculated using the following formula.

COGS = Beginning inventory + purchases - Ending Inventory

For Azur company

Beginning inventory:  30,840

Ending inventory : 20,560

Net purchases equal Net purchase equal to purchases plus freight-in minus discounts  freight-out are administrative expenses, hence do not feature in COGS

Net purchases =$102,800 + $15,420 -$ 10,280

Net purchases =$107,940

COGS = $30,840 +$107,940 -$20560

COGS = $118,220

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Consider the stock of ocean tuna which is massively overfished. it is rational for an individual to exploit the resource rather
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Who appoints the chairman of the board of governors of the federal reserve system ​
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7 0
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Read 2 more answers
Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are
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Answer:

Retained Earnings Balance at end of Year 1 =  $360

Explanation:

First we need to determine the profit/loss for the year as part of the retained earnings calculation.

Lexington Company

Income Statement for the year ended - Year 1

Revenue Earned                                                $3,200

Less Expenses                                                  ($2,420)

Net Income / (Loss)                                               $780

Then we calculate the Retained Earnings Balance

Retained Earnings Statement

Beginning Retained Earnings Balance                  $ 0

Add Profit earned during the year                      $780

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Ending Retained Earnings Balance                    $360

5 0
3 years ago
What should be the price of a stock with a beta of 0.7 that just paid a dividend of $1.25 that is expected to grow at 4% if the
Montano1993 [528]

Answer: $32.05

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Beta = 0.7

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Growth rate = 4%

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= 3% + 0.7 × (10% - 3%)

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= D1/(Required return-Growth rate)

=1.25 / (0.079 - 0.04)

= 1.25 / 0.039

= $32.05

4 0
3 years ago
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