On June 1, 2021, Royal Property Management entered into a one-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Royal will be paid a fixed fee of $59,000 and will receive an additional 15% of the fixed fee at the end of the contract provided that building occupancy exceeds 90%. Royal estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.

Assume that Royal accrues revenue each month, and estimates variable consideration as the most likely amount. On November 1, Royal revises its estimate of the chance the building will exceed the 90% occupancy threshold to a 70% chance. What is the total amount of revenue Royal should recognize on this contract in November of 2021?

Multiple Choice

• $8,604

• $4,755

• $4,130

• $4,475

Hot Cross Buns Gym provides monthly memberships as well as personal training sessions. The personal trainers earn​ 50% of the revenue for all personal training sessions. The gym also sells nutrition products. The general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year.

If a contribution margin income statement is prepared for the​ year, what is operating​ income?

A.

​$181,000

B.

​$216,000

C.

​$254,000

D.

​$289,000

1. Use two diagrams (one for Alberta, one for the world) to explain why the following might be
true: A drought around the world raises the total revenue that farmers received from the sale of
grain, but a drought only in Alberta reduces the total revenue that Alberta farmers receive.
2. You have the following information about good X and good Y:
• Income elasticity of demand for good X: -3• Cross-price elasticity of demand for good X with respect to the price of good Y: 2
Would an increase in income and a decrease in the price of good Y unambiguously decrease the
demand for good X? Why or why not?
3. A price change causes the quantity demanded of a good to decrease by 30 percent, while the
total revenue of that good increases by 15 percent. Is the demand curve elastic or inelastic?
Explain.

1. Galarus company had the following trial balance as of December 31, 2019

Galarus Company

Trial Balance

December 31, 2019

Additional information:

1. Supplies used during the month, $450
2. Prepaid insurance expired during the month, $300
3. Depreciation on equipment for the month, $550
4. Unearned service revenue earned during the month, $2,200
5. Accrued salary expense at the end of the month, $650

Based on the trial balance and the additional data, prepare financial statements for the year ended December 31, 2019

Given the data shown in the table for​ a​ monopolist:

1. Complete the​ table​ -- calculate​ ​MC, Total Revenue and MR for all output levels.

2. When the output level is 6​ units​: ​  

a. Should the​ monopolist​ increase, decrease or leave​ output​ unchanged? ​ 

b. Is MR​ greater​ than,​ less​ than, or equal​ to​ MC?

3. Identify the profit maximizing P and Q.

4. What is the​ ​per-unit profit when​ Q​ =​ 2?

5. What is the total profit at​ the​ profit-maximizing​ solution?

6. Suppose barriers to entry overtime​ significantly​ decrease. Will the profit maximizing price​ increase, decrease or stay the​ same?

The figure given below is the circular flow diagram of the economy of Argos.

a. Place the numbers below in the appropriate blanks in the diagram below.

What are the values of the following? Remember to include a minus sign (-) in front of negative values.

PVR Cinemas decide to continue screening a super hit film released on 17 March 2020 for the next two month till 15 May 2020 as they expect the revenue to increase in the month of April & May due to school vacation. The management opened advance booking for the tickets and all the tickets got sold. The cinemas received ₹ 60 lacs in total revenue for this 60-day screening of the movie. How should the cinema’s accountant treat this revenue? Explain the accounting concept that will aid the accountant in this treatment.
(a) What is Accrual Accounting? How does it differ from the Cash basis of Accounting?

(b) “The matching principle poses major challenges to the accountant.” Do you agree?
(a) How are common size statements useful to the analyst?

(b) Identify three financial ratios on which the management of a retail store should focus.

XY merchandising has 20 coffee mugs in the beginning inventory at a cost of $5 per coffee mug . on february 1,2012 they purchase 10 coffee mugs on account (Each coffee mug cost $6). On februay 5,2012 they sell coffee mugs for $10 per coffee mug on account. The business uses first in first out.  prepare the entry XY merchandising would make to record the sale of february 5,2012.

a) debt: accounts receivable -$150

credit: revenue - $150 debit:

cost of goods sold-$85

credit: inventory -$85

b) debt: accounts receivable - $150

credit: revenue - $150

debt: cost of goods sold - $80

credit: inventory - $80

c) debt: accounts receivable - $150

credit: revenue - $150

debt: cost of goods sold - $75

credit: inventory - $75

d) no entries needed on february 5, 2012

Abel Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,400 customers, but actually served 27,600 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.90q

Wages and salaries: $34,600 + $1.52q

Supplies: $0.92q

Insurance: $11,800

Miscellaneous expenses: $7,800 + $0.44q

The company reported the following actual results for February:

Required:

Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

POS-301: Analyzing Arizona Tax Worksheet

Complete all five parts of the worksheet.

Part One: Income Tax

Part Two: Arizona Sales Tax

2. Who determines the amount of each tax?

3. Where does revenue from this tax go? What does it fund?

Part Three: Arizona Utility Tax

2. Who determines the amount of each tax?

3. Where does revenue from this tax go? What does it fund?

Part Four: Property Tax

2. Who determines the amount of each tax?

3. Where does revenue from this tax go? What does it fund?