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Digiron [165]
2 years ago
5

Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $75.

Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31. On November 6, 2021, Jake Lawson purchased a season pass for $405. Required: When should Ski West recognize revenue from the sale of its season passes? Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
Business
1 answer:
Setler79 [48]2 years ago
8 0

Answer:

a) It will accrue revenue through time. As in November 6th it has the obligation to keep the downhill ski open or return the cash

cash   405 debit

unearned reveue 405 credit

--to record sales of season pass--

unearned revenue 81 debit

   service revenue      81 credit

--year-end adjustment for accrued revenue--

Income statetent

service revenue 81

Balance sheet

Liaiblities

unearned revneue 324

Explanation:

We must recognize revneue following the acounting pricniples of conservatisim and matching when the time at they occur.

405 is the cost for 5 months (Dec 1st to April 30th)

so 405 / 5 = 81 cost per month

At decmeber 31th we recognize 1 month

ANd this will be the value included in the income statement

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What can organizations do to institutionalize organizational learning? What practices and policies would aid in knowledge acquis
elena-s [515]

Answer:

There are many things that a company can do to institutionalise learning and knowledge. Some of them doesn't even cost much and take a lot of time to be implemented.

Empowerment of individual employees. Giving them more autonomy in the job and the capacity to work freely with the peers.

Making teams rather than working individually. Team spirit is essential in the learning process and to promote sharing.

Conducting internal development and training programs on a regular basis.

Using social media platforms to connect the employees so that they are able to share their knowledge, expertise on a real-time basis.

Reducing the power gap between the employees and their superiors.

Explanation:

8 0
2 years ago
Cheapo Manufacturing decided to lease a 100,000 square foot facility. What type of lease will they most likely sign? A net lease
Alinara [238K]

Net lease type will be the most likely sign by Cheapo manufacturing.

<u>Explanation:</u>

Single net leases, which are frequently alluded to as a Net or N rent, are not as regular in the rental world. In a rent this way, the proprietor moves a negligible measure of hazard to the occupant, who covers the property charges. This implies some other cost, for example, protection, support and fixes, and utilities—are the proprietor's obligation. The landowner is likewise liable for any support and additionally fixes that must be finished over the span of the rent inside the property.  

Occupants under a solitary net rent wind up paying marginally lower lease than with a standard rent as a result of the additional expense of property charges. In any case, a higher rental installment doesn't reduce the landowner's obligation regarding staying up with the latest.

6 0
2 years ago
You expect KT industries (KTI) will have earnings per share of $4 this year and expect that they will pay out $1.75 of these ear
melisa1 [442]

The value of a share of KTI's stock today is closest to 9.5% , 0.004375 .

Explanation:

Investment Investment (ROI) is an investment performance metric used to evaluate or compare the success of a variety of investment operations.

In addition to the spending price, ROI aims to explicitly calculate the make value of a single project.

g = retention rate

ROI = 0.75*13% = 9.5%,

Price = 1.75/(0.10-0.0975) = 0.004375

5 0
2 years ago
Suppose that the demand equation for Bobby Dolls is given by q = 216 – p2, where p is the price per doll in dollars and q is the
NikAS [45]

Answer:

P.Ed at p = 5 :- 0.26

Revenue maximising price = 8.5 ; Maximum Total Revenue = 1222

Explanation:

Price Elasticity of Demand shows responsive change in demand, due to change in price.  P.Ed = ( dq / dp ) x ( p / q )

q = 216 - p^2

dq / dp = - 2p  

P.Ed = dq / dp x ( p / q )  

So, PEd = ( -2p ) x ( p / q )

[ (- 2p) (p) ] / [ 216 - p^2 ]

(- 2p^2 ) / ( 216 - p^2 )

Putting value of P = 5 in P.Ed

<u>- 2(25) </u>

216 - 25

= - 50 / 191

P.Ed = 0.26

Revenue is the total value of receipts from sale of goods & services. TR = p x q

q = 216 - p^2

TR = 216p - p^3

To find price maximising TR , we will derivate TR function with respect to 'p'  

d TR / d p = 216 - 3p^2  

d TR / d p = 216 - 3p^2   = 0

3p^2 = 216

p^2 = 216 / 3

p^2 = 72

p = √ 72

p = 8.5

Finding maximum revenue ; Putting price = 8.5 in TR function

TR = 216p - p^3

216 (8.5) - (8.5)^3

1836 - 614

1222

7 0
2 years ago
Everything Looks Like a Nail, Inc. is a manufacturing company that produces hammers. The company faces a number of different fix
nikitadnepr [17]

Answer:

a. Regulatory compliance costs  - Fixed cost

b. Salaries of top management and key personnel - Fixed cost

c. Cost of metal used in manufacturing  - Variable cost

d. Cost of wood used in manufacturing  - Variable cost

e. Mortgage payments  - Fixed cost

f. Industrial equipment costs  - Fixed cost

g. Interest on debt  - Fixed cost

h. Postage and packaging costs - Variable cost

Explanation:

The cost which is affected by the production of units is known as variable cost. The cost which does not vary with the units produced is fixed cost. Fixed cost does not change from period to period irrespective of level of output and is usually same for a certain period. It is easy to budget for fixed costs instead of variable cost. Variable cost changes every period and is based on company's output.

6 0
2 years ago
Read 2 more answers
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