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lianna [129]
3 years ago
12

Novak Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January

1, 2020, Novak entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,900 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $8,700. In addition, Walleye agrees to pay an additional $21,800 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
Required:
a. Prepare the journal entries for Tyler in 2019 and 2020 related to this service contract.
b. Prepare the journal entries for Tyler in 2020 related to the modified service contract, assuming a prospective approach.
c. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation
Business
1 answer:
faust18 [17]3 years ago
7 0

Answer: See explanation

Explanation:

a. 1 jan 2020

Debit Cash $10,900

Credit Unearned revenue $10,900

31st dec 2020

Debit Unearned revenue $10,900

Credit Service revenue $10,900

1 jan 2020

Debit Cash $10,900

Credit Unearned revenue $10,900

31st dec 2020

Debit Unearned revenue $10,900

Credit Service revenue $10,900

b. 1 Jan 2021

Debit Cash $30500

Credit Unearned revenue $30500

31st dec 2020

Debit Unearned revenue $7,625

Credit Service revenue $7,625 ($30500/4)

c. 1 Jan 2020

Debit Cash $30500

Credit Unearned revenue $30500

31st Dec 2020

Debit Unearned revenue $8,700

Credit Service revenue $8,700

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The United States will import 3 million CDminusRom drives if​ ________ tax per CDminusRom drive is levied on imported CDminusRom
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Answer:

A. no

Explanation:

If there is no tax rate per CDminusRom, to import it will cost less. It is easier when there is no tax rate attached. Therefore, The United States will import 3 million CDminusRom drives if​ ____NO____ tax per CDminusRom drive is levied on imported CDminusRom drives. Hence, the answer is A

8 0
3 years ago
a strategy involves employing essentially the same strategic theme (low-cost, differentiation, focused, best-cost) in all countr
harkovskaia [24]

The correct answer is option B. Transnational strategy involves employing essentially the same strategic theme in all country markets while allowing some country-to-country customization to fit local market conditions.

In its operations, a transnational strategy makes use of a high degree of local responsiveness and a high degree of global integration. It aims to standardize as much as it can while simultaneously localizing its offerings to each worldwide market. Offering specialized goods and services for regional markets while maintaining a high level of standardization to gain from economies of scale is the aim of multinational strategy.

Large corporations that have a variety of subsidiaries, branches, or offices across numerous international markets frequently employ transnational strategy. Determining what remains constant across all worldwide communications and processes and where local subsidiary adjustments in global marketplaces are changed or authorized presents a difficulty.

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5 0
1 year ago
Louise is overwhelmed with the new tasks that she has been assigned after the department merger. Each day, she arrives at work a
mojhsa [17]

Answer:

D. Time-management.

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8 0
3 years ago
you sell 300 laptops per week at $690 per laptop. You sell 432 tablets per week at $590 per tablet. Which generates more dollars
vitfil [10]
300 X $690 = $207,000

432 X $590 = $254,880

Hope this helps!
STSN
4 0
3 years ago
Read 2 more answers
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cos
gulaghasi [49]

Answer:

(1) \text{Total Cost}=1246.67+7.60\ \text{Volume}

(2) The variable cost per unit produced is $7.60.

(3) The coefficient of determination is 0.96 or 96%.

(4) The estimated total cost is $5,046.67.

Explanation:

A regression analysis for the provided data is performed on Microsoft Excel.

The output is attached below.

(1)

The estimated regression equation that could be used to predict the total cost for a given production volume is:

\text{Total Cost}=1246.67+7.60\ \text{Volume}

(2)

The variable cost per unit produced is given by the slope of the line.

The slope of a regression line represent the value of the dependent variable for one unit of the independent variable.

So, the variable cost per unit produced is $7.60.

(3)

Consider the regression output attached.

The coefficient of determination is 0.96 or 96%.

This implies that the percentage of the variation in total cost that can be explained by production volume is 96%.

(4)

For Volume = 500 units predict the total cost as follows:

\text{Total Cost}=1246.67+7.60\ \text{Volume}

                 =1246.67+(7.60\times 500)\\\\=1246.67+3800\\\\=5046.67

Thus, the estimated total cost is $5,046.67.

4 0
3 years ago
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