Answer:
a) It will accrue revenue through time. As in November 6th it has the obligation to keep the downhill ski open or return the cash
cash 405 debit
unearned reveue 405 credit
--to record sales of season pass--
unearned revenue 81 debit
service revenue 81 credit
--year-end adjustment for accrued revenue--
Income statetent
service revenue 81
Balance sheet
Liaiblities
unearned revneue 324
Explanation:
We must recognize revneue following the acounting pricniples of conservatisim and matching when the time at they occur.
405 is the cost for 5 months (Dec 1st to April 30th)
so 405 / 5 = 81 cost per month
At decmeber 31th we recognize 1 month
ANd this will be the value included in the income statement
Answer:
$1,450
Explanation:
Rhett made his annual gambling trip to Uwin Casino. On this trip Rhett won $250 at the slots and $1,200 at poker.
Also this year, Rhett made several trips to the racetrack, but he lost $700 on his various wagers.
The amount must Rhett include in his gross income includes that on this trip Rhett won $250 at the slots and $1,200 at poker which is $1,450
The internal Revenue Service requires that <u>''You must report all gambling winnings as "Other Income".</u> When you have gambling winnings, you may be required to pay an estimated tax on that additional income.
Answer:
c.
Explanation:
the product is a "me-too" and contains no new technology or points of difference
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
Answer:
Deferred tax asset = $21000
Explanation:
Given the warranty liability = $105000
Effective tax rate = 20%
The deferred tax asset can be calculated by calculating the effective tax from the warranty liability. Therefore, just multiply the effective tax rate to the warranty liability.
Deferred tax asset = Effective tax rate x Warranty liability
Deferred tax asset = 20% x $105000
Deferred tax asset = $21000
