The revised revenue recognition accounting standard employs a five-step process to achieve the core principle to recognize income upon the transfer of promised goods or services. Use the Internet to research a company that bundles a product and a service. Examine income recognition of the bundled product and service for the company by addressing each step in the five-step process for revenue recognition. Give your opinion on the most critical step for accurately reporting revenue in the five-step process. Provide support for your response.

A particular city’s accounting system is organized and operated on a fund basis. Among the types of funds used are a general fund, a special revenue fund, and an enterprise fund.

Required for Initial Discussion Post:

Explain the basic differences in revenue recognition between the accrual basis of accounting and the modified accrual basis of accounting in relation to governmental accounting. What basis of accounting should be used for each of the following funds: (1) general fund, (2) special revenue fund, and (3) enterprise fund?

On December 31, 2019, The Bates Company's revenue is $360,000 and expenses total $260,000 before consideration of the following:

Accrued wages total $14,000;

Accrued revenues total $42,000;

Depreciation expense is $20,000;

Rental revenue of $4,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue;

The income tax rate is 35% of income before income taxes.

What is Bates' net income after consideration of the above information?

Multiple Choice

• $72,800.

• $70,200.

• $100,000.

• $112,000.

1. Please explain what accrued expenses are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for an accrued expense.

2. Please explain what accrued revenues are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for accrued revenues.

3. Please explain what an Unearned Revenue account is and why an adjustment may be necessary for Unearned Revenue. Please provide an example of an adjusting entry for Unearned Revenue.

Using www.irs.gov, find the publication related to Form 1040 and research how to calculate taxable income for individuals. Discuss whether this source is a primary or a secondary source of federal income tax law. Also research the Internal Revenue Code and find the section that defines gross income. Then find another section of the Internal Revenue Code that specifically excludes an item of income from the definition of gross income. Discuss whether the Internal Revenue Code is a primary or secondary source of tax law.

The City of San Antonio is considering various options for providing water in its 50year plan, including desalting. One brackish aquifer is expected to yield desalted water that will generate revenue of $4.1 million per year for the first 4 years, after which less production will decrease revenue by 10% per year each year. If the aquifer will be totally depleted in 23 years, what is the present worth of the desalting option revenue at an interest rate of 8% per year?

You received a high-yield savings account that contains $1,000,000. The account has a 7% annual interest rate and you want to take out a constant amount every year for 40 years.

1. How much would you be able to withdraw every year? Hint: the annual interest rate should be used as the discount rate in the finite time annuity formula.

2. Using Microsoft Excel, decompose your annual withdrawals into interest revenue and revenue earned from principal deduction (for example, at t=1, you get 7% x $1,000,000 in interest, and take the remaining amount from the principal – these together should equal the amount you determined in (1)). Graph interest revenue and principal revenue together, with time on the xaxis. Report the graph based on all 40 years, and only report the interest revenue and principal revenue numbers for the first 10 years.

3. Suppose you want to take out $100,000 per year. For how many years would you be able to make this exact withdrawal?

4. After your last exact withdrawal from (3), you decide to withdraw everything in your account one year later. How much money would you get from your final withdrawal?

11. Average fixed cost

12. Economies of scale occur when

13. Which of the following is a characteristic of a competitive market?

14. Firms operating in competitive markets produce output levels where marginal revenue equals

15. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then

Suppose demand for pianos is very elastic. Suppose that supply of pianos is also quite elastic, but not as elastic as demand. If government imposes a tax on pianos, and the tax is payable by producers, what will be the outcome?

Select one:

Consumers will bear the entire burden of the tax

Producers will bear the entire burden of the tax

Consumers will bear more of the tax burden than producers

Producers will bear more of the tax burden than consumers

There isn't enough information to tell

Consider a simple income tax equal to 25% of a person's annual income. This tax is best considered _______ because ________.

Select one:

Regressive; the rich don't pay proportionately more tax than the poor

Proportional; everyone in society is taxed equally

Progressive; people who have higher incomes will pay more total tax (in $) than people with lower incomes

It's impossible to make any judgement

Consider an ad valorem tax on a luxury good such as cigars. Suppose the current tax rate is 75%. If the tax rate is increased to 100%, what will happen to government tax revenue?

Select one:

Government tax revenue will fall to zero

Government tax revenue will definitely decrease

Government tax revenue will likely decrease

Government tax revenue will likely increase

Government tax revenue will definitely increase

There is not enough information to tell

Q4 You have performed the common sizing and horizontal analysis to the financial statement of X co. You have selectively considered the current (Year 0) parameters as mentioned in the table below. Based on the value's, you have calculated the Year 1 ratios and growth rates

Net working Capital: Sales revenue/Net Working Capital , Net PPE Turnover: Sales revenue/Net PPE, Depreciation/Net PPE : Depreciation/ Beginning Period Net PPE.

Sales revenue for X Co. at Year 0 = $180 million. The growth rate of 4% at Year 1 denotes growth from year0 to year1 for sale revenue. There is no debt and interest payments. Beginning period Net PPE for Year 0 is $ 80 Million. Project Sales revenue, Net profit, Gross Profit, EBITDA, Net PPE and Net working capital values for Year 1.