Answer:
Momentous Occasions
a. Revenue of $1,000 is recognized on April 2, though the cash receipt is recorded on March 3 as deferred revenue. This means that the recognition occurred on a separate date from when the cash was received.
b. Revenue of $4,100 will be recognized on the date the party is held and not on the February 28 date when the cash was received. This means that the recognition occurred on a separate date from when the cash was received.
Explanation:
Momentous Occasions is required to recognize revenue on the date the service is performed and not when the cash is received in accordance with the accrual concept, unless it chooses to use the cash basis as a small business.
Answer:
The rate of return expected on this project by Cold Goose Metal Works Inc. is 15.20%
Explanation:
Since flotation cost is 4% that implies that $500,000 is actually 96% (100%-4%) of the cash proceeds from the capital funding,hence funds raised is computed thus:
funds raised=$500,000/0.96=$520,833.33
Annual return on investment=cash inflow-initial cash outflow
cash inflow is $600,000
cash outflow is $520,833.33
annual return on investment=$600,000-$520,833.33=$79166.67
rate of return on project=annual return on investment/initial investment
=$79,166.67
/$520,833.33*100=15.20%
The rate of return that Cold Goose Metal Works Inc is 15.20%
Answer:
4,700 shares
Explanation:
The computation of the number of shares of common stock outstanding at the end of the period is shown below
= Beginning shares + issued shares - repurchase shares + reissue shares
= 2,000 shares + 3,000 shares - 500 shares + 200 shares
= 4,700 shares
We applied the above equation to find out the number of shares outstanding at the end of the year
Answer:
It means movies are relatively cheaper than working hours
Explanation:
In order to estimate the relativity of the two activities, there is a need to compare the changes over ten years
1. 10 years ago, Movie ticket= $5, 10 Years later Movie ticket= $8, the 10 year difference is $3
2. 10 years ago, average hourly wage = $10, 10 years later, average hourly wage = $20, the 10 year difference is $10
First, it means for the $3 change in movie ticket cost, there was a $10 change in the average hourly wage.
Put differently, while movie ticket got a 60% increase in price 3/5 x 100=60%
Average hourly wage got 100% increase 10/10 x 100= 100%
It means that working hours got more expensive and movie tickets got cheaper
