How to make a Revenue Recognition memo with this information?

Background: Using Implementation Guidance Heavenly Tours Heavenly Tours (HT) was the brainchild of four college friends: Bart, Ava, Carla and Dave. They wanted to create a one-stop, high-touch, discounted tour experience for visitors to two local theme parks. Park Survival provides various simulated survival experiences. Park Adrenaline provides numerous adventures guaranteed to provide visitors with adrenaline rushes. Bart is responsible for managing the relationship with both parks and obtaining discounted admissions for HT’s customers. Ava is responsible for the tour guides, who help customize the experience for visitors. Carla is responsible for working with high-end restaurants in the area surrounding the parks to obtain discounts on food and beverages. Dave is responsible for merchandise, which can be sold to HT’s customers. Historically, HT has reported all cash collected as revenue. A private investor is requesting financial information prepared in accordance with generally accepted accounting principles before investing in HT. The investor has indicated a particular interest in HT’s total revenues. The four friends are meeting with their local accountant to discuss next steps. The accountant informs them they will need to analyze each revenue stream to determine whether HT is acting as a principal or an agent. The accountant states this determination is necessary for proper accounting treatment because when a principal satisfies a performance obligation, the gross amount of consideration is recorded as revenue; however, when an agent satisfies a performance obligation, only the amount of the fee or commission earned is recorded as revenue. Background: The accountant asked Bart to explain the relationship with both parks. Bart explained that he had been able to obtain a 15% discount from Park Survival. HT customers can access Park Survival’s website and use a discount password provided by HT. Under this agreement, HT’s customers are charged 90% of the full entrance price on their credit card when their order is accepted on Park Survival’s website. Once the order is processed on Park Survival’s website, the customer is given a pass that can be used for entrance to Park Survival and 5% is remitted to HT. The negotiations with Park Adrenaline had been more difficult because it was a newer park and in need of cash. Accordingly, HT purchased 100 passes for 90% of the face value. These passes are good for one year from the date of purchase. Any passes that are not used during the year would simply expire. HT has obtained the right to each pass purchased to provide the pass holder with access to the park. HT is free to sell these passes to its customers at any price, as long it doesn’t exceed the face value of the pass. The customer pays an agreed-upon amount when an order is accepted on HT’s website. Park Adrenaline retained the full responsibility for fulfilling its obligation to customers who entered the park with a pass purchased from HT.

ASSIGNMENT REQUIREMENTS:

Read ASC 606-10-55-36 through 40 in ASC 606, Revenue from Contracts with Customers, discussing implementation guidance for principal versus agent determination.

Review the examples in ASC 606-10-55-316 through 334F.

1. For each park, determine if HT is a principal or an agent and, accordingly, how the revenue should be recorded.

2. Prepare a professional accounting research memorandum in proper form with reference to the appropriate sections of the FASB codification.

3. In the memo provide a thorough explanation of your conclusions and the rationale behind your conclusion referencing the appropriate sections of the FASB codification.

Using the HotelDB tables, provide the following result as a screen image.

WRITE SQL to retrieve rows from any hotel with Family room types and price less than $150.

use hoteldb;
CREATE TABLE HOTEL
( hotelNo numeric primary key
, name varchar(40)
, address varchar(40)
, city varchar(200)
);
CREATE TABLE ROOM
( roomNo numeric Primary Key
, hotelNo numeric References HOTEL
, type varchar(20)
, price dec(9,2)
);

CREATE TABLE GUEST
( guestNo numeric primary key
, name varchar(40)
, address varchar(40)
);

CREATE TABLE BOOKING
( hotelNo numeric REFERENCES Hotel
, guestNo numeric REFERENCES Guest
, dateFrom date NOT NULL
, dateTo date
, roomNo numeric REFERENCES ROOM
);

INSERT INTO HOTEL VALUES (1,'Hilton Hotel','123 Main st','New Jersey');
INSERT INTO HOTEL VALUES (2,'Holiday Inn','50 3rd Ave.', 'New York');
INSERT INTO HOTEL VALUES (3,'Governor Hotel','8243 Berkley Sq.','London');
INSERT INTO HOTEL VALUES (4,'New World Hotel','30 East River Rd', 'Hong Kong');
INSERT INTO HOTEL VALUES (5,'Santos Hotel','15 Main Rd', 'Philippines');

insert into room values (1,1,'Family',200);
insert into room values (2,1,'Family',200);
insert into room values (3,1,'Single',100);
insert into room values (4,1,'Single',100);
insert into room values (5,2,'Family',80);
insert into room values (6,2,'Family',85);
insert into room values (7,2,'Family',80);
insert into room values (8,3,'Single',35);
insert into room values (9,3,'Double',115);
insert into room values (10,3,'Double',115);
insert into room values (11,3,'Family',150);
insert into room values (12,4,'Single',30);
insert into room values (13,4,'Single',30);
insert into room values (14,4,'Single',30);
insert into room values (15,4,'Double',90);
insert into room values (16,4,'Double',90);
insert into room values (17,4,'Double',90);
insert into room values (18,4,'Family',110);
insert into room values (19,4,'Family',110);
insert into room values (20,5,'Double',38);
insert into room values (21,5,'Double',38);
insert into room values (22,5,'Single',32);
insert into room values (23,5,'Single',32);

insert into guest values (1,'John Doe','Los Angeles');
insert into guest values (2,'Mary Jane','New York');
insert into guest values (3,'Hank Kim','London');
insert into guest values (4,'Bob Jones','London');
insert into guest values (5,'Paul John','New York');
insert into guest values (6,'Ann Smith','New York');
insert into guest values (7,'James Mann','London');
insert into guest values (8,'Mary Mann','London');
insert into guest values (9,'Jim Jones','New York');
insert into guest values (10,'Tom Jones','Los Angeles');
insert into guest values (11,'Jimmy Johnson','Boston');
insert into guest values (12,'Harry Coleman','Dallas');
insert into guest values (13,'Bob James','Los Angeles');
insert into guest values (18,'John Mary','London');
insert into guest values (21,'Jeff Bridges','London');
insert into guest values (23,'Larry Cohen','New York');

You are designing a slide for a water park. In a sitting position, park guests slide a vertical distance h down the water-slide, which has negligible friction. When they reach the bottom of the slide, they grab a handle at the bottom end of a 6.00-m-long uniform pole. The pole hangs vertically, initially at rest. The upper end of the pole is pivoted about a stationary, frictionless axle. The pole with a person hanging on the end swings up through an angle of 72.0∘, and then the person lets go of the pole and drops into a pool of water. Treat the person as a point mass. The pole’s moment of inertia is given by I=1/3ML^2 where L = 6.00 m is the length of the pole and M = 31.0 kg is its mass. For a person of mass 70.0 kg, what must be the height h in order for the pole to have a maximum angle of swing of 72.0∘ after the collision?

In 2017, McGrath & Sons, a small​ environmental-testing firm, performed 11,000 radon tests for $ 300 each and 15,600 lead tests for $ 220 each. Because newer homes are being built with​ lead-free pipes, ​ lead-testing volume is expected to decrease by 99​% next year.​ However, awareness of​ radon-related health hazards is expected to result in a 55​% increase in​ radon-test volume each year in the near future. Jim McGrath feels that if he lowers his price for lead testing to $200 per​ test, he will have to face only a 44​% decline in lead-test sales in 2018.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath holds prices at 2017 levels.

Prepare a 2018 sales budget for McGrath & Sons assuming that McGrath lowers the price of a lead test to $200. Should McGrath lower the price of a lead test in 2018 if the​company's goal is to maximize sales​revenue?

Explain why this statement is false: Since there are many hotels and many hotel customers in San Francisco, it is definitely appropriate to use the supply and demand model to analyze the market for hotel rooms in San Francisco. [Hint: Under what circumstances is the supply and demand model appropriate?]

Outline the three different parts of the Theme Park product. Explain why the product lifecycle of the Theme Parks steeps early very quickly. Disney theme park product is the responsibility of “Disney Imagineers” who are they and what are interactive products? (give examples where possible)

The senior vice president for marketing at a Hotel believes that the company’s recent advertising of the hotel has decreased the average room idle rate. To test the hypothesis, random sample of daily idle rates (in percentages) before the advertising is collected. A similar random sample of daily idle rates is collected after the advertising took place. The data are as follows.

Before (%) 8 17 12 21 19 10 After (%) 6 10 1 11 17 8

Is there evidence that the average room idle rate of the hotel has decreased after the advertising at the 0.01 level of significance.

Maple Park Senior Center has a weekly payroll of $15,000. December 31 falls on Wednesday, and Maple Park Senior Center will pay its employees the following Monday (January 5) for the previous full week. Assume Maple Park Senior Center has a five-day workweek and has an unadjusted balance in Salaries Expense of $600,000.

Requirements

1. Record the adjusting entry for accrued salaries on December 31.
2. Post the adjusting entry to the accounts involved and show the balances after adjustments.
3. Record the journal entry for payment of salaries made on January 5.

The demand curve of the only customer in the amusement park is QD = 200-P. The park charges an admission fee of 100, while each ride costs 9.

1. Determine the supply curve of the park.
2. Determine the producer surplus without distortions in the market.
3. Determine the consumer surplus without distortions in the market.
4. Price at which dead weight loss is minimized?
5. At which quantity does it occur (in rides)?
6. if the government wishes to limit the number of rides per person to at most 5 per person, calculate the loss in economic efficiency.