Problem 3-9 (Part Level Submission)

Presented below is the trial balance of the Pearl Golf Club, Inc. as of December 31. The books are closed annually on December 31.

Post the ledger accounts.

On January 1, 2019, FLOWERS Inc. rendered services in exchange for a four-year promissory note having a face value of $10,000. Interest at a rate of 3% is payable annually on January 1 (first payment Jan 1, 2020). The customer has credit ratings that require it to borrow money at 8% interest. FLOWERS uses IFRS. Required: Show and label all calculations. (Round to the nearest dollar.)

What would be the value of the service revenue recorded on January 1, 2019?

Prepare the full amortization table for note.

What is the value of the interest revenue recorded by FLOWERS in 2019?

What is the value of the interest revenue recorded by FLOWERS in 2020?

What is the value of note / interest receivable recorded by FLOWERS at its year end of December 31, 2020

Directions: Answer each question to the best of your ability. Please show all work (including the 7 steps of
Hypothesis Test) and round decimals to the nearest ten-thousandths.

3. A student organization uses the proceeds from a particular soft-drink dispensing machine to finance its
activities. The price per can had been $0.50 for a long time, and the average daily revenue during that
period had been $51.50. The price was recently increased to $0.60 per can. A random sample of 20 days
after the price increase yielded a sample average revenue and sample standard deviation of $47.30 and
$4.20, respectively. Does this information suggest that the true average daily revenue has decreased
from its value before the price increase? Test the appropriate hypothesis using ? = 0.10.

Hi,

I need to distinguish between fixed costs and variable costs, but I have no idea where to even start. Could you please explain? Simple answer will suffice.

Thank you

1.      Suppose mountain spring water can be produced at no cost and the inverse demand for mountain spring water is P = 1200 – 0.2Q.

a.     Suppose the market of mountain spring water is supplied by two firms (Firm A and firm B) that behave like a Cournot duopoly. Find the Nash Equilibrium price and quantity of production for each firm. (Hint: Marginal revenue for firm A is 1200 - 0.4Qa - 0.2Qb and marginal revenue for firm B is 1200 - 0.2Qa - 0.4Qb.)

b.     Suppose the market of mountain spring water is supplied by two firms (Firm A and firm B) that behave like a Stackelberg duopoly where firm A is the leader and firm B is the follower. Find the Nash Equilibrium price and quantity of production for each firm. (Hint: marginal revenue for firm A is 600 - 0.2Qa)

Please include steps and explanations

On May 15, Windy Co., purchases $87,000 of supplies; payment is not required until June 14. What action should be taken by Windy on May 15?

Multiple Choice

• No journal entry is required; this transaction should not be recorded until the payment is made.

• A journal entry that includes a debit to Prepaid Expenses should be prepared.

• A journal entry that includes a debit to Accounts Payable should be prepared.

• A journal entry that includes a credit to Accounts Payable should be prepared.

The gross profit equation is:

Multiple Choice

• (Sales Revenue − Sales Returns & Allowances − Sales Discounts) − Cost of Goods Sold.

• (Sales Revenue − Sales Returns & Allowances − Sales Discounts) + Cost of Goods Sold.

• (Sales Revenue + Sales Returns & Allowances) − Cost of Goods Sold.

• (Sales + Sales Discounts) − Cost of Goods Sold.

***Basic company facts: Name of the firm: Britannia Category of the firm: FMCG State of incorporation: Kolkata, West Bengal, India. Year of foundation: 1918 Primary & secondary SIC codes: N/A Independent auditor: BSR & Co Shares listed in: Bangalore stock exchange, national stock exchange, OTCEI, madras stock exchange, Delhi stock exchange, MCX stock exchange etc. Stock ticker symbol: BRITANNIA

1.)

Summarize your firm’s margins that you computed in No. 6 for each of the last three years.

GinTel Pte Ltd enters into a 24-month contract with its customer where the customer receives Paid-TV services for $30 per month (to be paid at the end of each month). The customer receives a free Set-Top box. The standalone selling price of the Set-Top box is $200, the cost of the Set-Top box is $150, and the standalone selling price of the Paid- TV services is $25 per month.

(a) Under FRS 115 Revenue from Contracts with Customers, identify the separate performance obligations, determine and allocate the transaction price and discuss when revenue should be recognised.

(b) Prepare the necessary journal entries (narrative not required) to illustrate how the above transaction and its matching expenses would be recognised under FRS 18 Revenue instead.

[The following information applies to the questions displayed below.]
  
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:

Westgate recognizes revenue over time according to percentage of completion.

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. (Do not round intermediate calculations. Loss amounts should be indicated with a minus sign.)

A hypothetical society has three income earners, and all three must pay income taxes. The taxable income of Smith is $35,000, the taxable income of Jones is $100,000, and the taxable income of Brown is $200,000.

Complete the following table by computing tax revenue under a proportional income tax when the tax rate is 10% and 15%.

Suppose a progressive tax system is implemented with a rate of 5% on income of $0–$40,000, a rate of 8% on income from $40,001 to $100,000, and a rate of 15% on all income over $100,000.

Under a progressive income tax system, a person’s tax rate _______ as his or her taxable income rises. In this case, tax revenue is _____ under the proportional income tax than it is under the newly implemented progressive income tax system.