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scoundrel [369]
3 years ago
10

On January 15, 2021, Bella Vista Company enters into a contract to build custom equipment for ABC Carpet Company. The contract s

peci
Business
1 answer:
lesya692 [45]3 years ago
5 0

Answer:

recorded on March 31, 2021.

Explanation:

As we know that if there is an accural basis so the revenue is recognized and recorded when it is earned here the receipt of cash is not material for recording the revenue

Since in the given situation, the date of completion of the contract is considered for recording date of revenue as per the accrual basis

So March 31, 2021 should be considered

 

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Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and othe
Svet_ta [14]

Answer:

A silent partner

Explanation:

A silent partner is a partner whose liability is limited to the amount invested in the project. Also, a limited partner hardly takes part in the day to day running of the business.

I hope my answer helps you

8 0
3 years ago
Woodwick Company issues 9%, five-year bonds, on December 31, 2014, with a par value of $96,000 and semi-annual interest payments
ad-work [718]

Answer:

A) The issuance of bonds on December 31, 2016.

Dr Cash 104,031

    Cr Bonds payable 96,000

    Cr Premium on bonds payable 8,031

B) The first interest payment on June 30, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

C) The second interest payment on December 31, 2017.

Dr Interest expense 3,517

Dr Premium on bonds payable 803

    Cr Cash 4,320

4 0
3 years ago
PharmY, Inc., is a U.S. GAAP reporter that is in the pharmaceutical industry. In the current year, PharmY incurred expenditures
Whitepunk [10]

Answer with Explanation:

Tangible assets fall under the scope of International Accounting Standard IAS-36 Property, Plant and Equipment which says that assets that qualify following conditions, must be capitalized:

  • Assets that have life expectancy of more than a year.
  • Benefits of the Assets are controlled by the entity that will flow towards the company.

Now here, the life expectancy of laboratory equipment is unknown and also that we don't know if the asset can be resold in the market or not. This means, if the asset has life expectancy is no more than a year and that the future benefits will flow towards the company then it must be capitalized otherwise it must be expensed out as per the guidelines of International Accounting Standard IAS-38 Intangible Assets, which says that the research cost prior to the development expenditure must be expensed out.

The other two costs are revenue expenditure and must be expensed out under the name research and development cost as per the guidelines of IAS-38.

4 0
3 years ago
If creditors add finance charges after subtracting payments made during the billing period, this is called the: A. APR method. B
vladimir1956 [14]

The correct answer is D. Adjusted balance method.

Adjusted balance method in termed as the method which is being used by finance companies and banks to calculate for finance charges or interest income. which is known to be associated with credit card account or bank account.

The finance waits to aggregate all the adjustments and also calculates finance charges or interest rates by the end of billing period which will depend with the ending balance.

6 0
3 years ago
Read 2 more answers
Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) ________ pric
vredina [299]

Southwest Airlines offers vacation packages that include airfare, car rental, and lodging. Southwest is using a(n) <u>bundle </u>pricing strategy.

What is bundle pricing ?

A pricing strategy in which managers offer multiple products or services as a single package ("bundle") is called bundle pricing.

Motivation of bundle pricing:

Particularly useful if your customers' demand is highly variable but price discrimination is impractical.

When consumers' price sensitivity of demand varies widely and market conditions make price discrimination difficult

If customers have diverse tastes, it can increase the seller's profit.

It is a method of simulating perfect price discrimination when perfect price discrimination is not possible or when charging multiple prices for the same product is illegal.

Types:

Simple Bundling: When managers offer multiple products or services in a single package so that customers do not have the option of purchasing package components separately

Mixed Bundling: Allows customers to purchase package components as a whole or separately.

Learn more about bundle pricing here: brainly.com/question/23175408

#SPJ4

4 0
1 year ago
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