1. Culver Inc. sells tickets for a Caribbean cruise on ShipAway Cruise Lines to Carmel Company employees. The total cruise package price to Carmel Company employees is $67,000. Culver Inc. receives a commission of 7% of the total price. Culver Inc. therefore remits $62,310 to ShipAway.
Prepare the journal entry to record the remittance and revenue recognized by Culver Inc. on this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)
2. Windsor Corp. enters into a contract with a customer to build an apartment building for $1,046,900. The customer hopes to rent apartments at the beginning of the school year and provides a performance bonus of $148,500 to be paid if the building is ready for rental beginning August 1, 2018. The bonus is reduced by $49,500 each week that completion is delayed. Windsor commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:
| Completed by |
|
Probability |
| August 1, 2018 |
|
70 |
% |
| August 8, 2018 |
|
20 |
|
| August 15, 2018 |
|
4 |
|
| After August 15, 2018 |
|
6 |
|
(a) Determine the transaction price for the contract, assuming Windsor is only able to estimate whether the building can be completed by August 1, 2018, or not (Windsor estimates that there is a 70% chance that the building will be completed by August 1, 2018).
(If answer is 0, please enter 0. Do not leave any fields blank.)
(b) Determine the transaction price for the contract, assuming Windsor has limited information with which to develop a reliable estimate of completion by the August 1, 2018, deadline.
(If answer is 0, please enter 0. Do not leave any fields blank.)
3. Bonita Company sells goods to Windsor Company during 2017. It offers Windsor the following rebates based on total sales to Windsor. If total sales to Windsor are 10,500 units, it will grant a rebate of 3%. If it sells up to 18,600 units, it will grant a rebate of 4%. If it sells up to 29,200 units, it will grant a rebate of 7%. In the first quarter of the year, Bonita sells 10,400 units to Windsor at a sales price of $104,000. Bonita, based on past experience, has sold over 42,900 units to Windsor, and these sales normally take place in the third quarter of the year.
What amount of revenue should Bonita report for the sale of the 10,400 units in the first quarter of the year.
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Pharoah’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $96 on January 2, 2017. Pharoah will receive an additional commission of $11 each year for as long as the policyholder does not cancel the policy. After selling the policy, Pharoah does not have any remaining performance obligations. Based on Pharoah’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change.
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Determine the transaction price of the arrangement for Pharoah, assuming 100 policies are sold.
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Determine the revenue that Pharoah will recognize in 2017. (Round answer to 0 decimal places, e.g. 5,125.)
| Revenue |
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$ |
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5.
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Sage Biotech enters into a licensing agreement with Pang Pharmaceutical for a drug under development. Sage will receive a payment of $10,000,000 if the drug receives regulatory approval. Based on prior experience in the drug-approval process, Sage determines it is 85% likely that the drug will gain approval and a 15% chance of denial.
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Determine the transaction price of the arrangement for Sage Biotech.
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Assuming that regulatory approval was granted on December 20, 2017, and that Sage received the payment from Pang on January 15, 2018, prepare the journal entries for Sage. The license meets the criteria for point-in-time revenue recognition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)
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6.
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Whispering Company manufactures equipment. Whispering’s products range from simple automated machinery to complex systems containing numerous components. Unit selling prices range from $200,000 to $1,500,000 and are quoted inclusive of installation. The installation process does not involve changes to the features of the equipment and does not require proprietary information about the equipment in order for the installed equipment to perform to specifications. Whispering has the following arrangement with Winkerbean Inc.
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Winkerbean purchases equipment from Whispering for a price of $1,040,000 and contracts with Whispering to install the equipment. Whispering charges the same price for the equipment irrespective of whether it does the installation or not. Using market data, Whispering determines installation service is estimated to have a standalone selling price of $51,000. The cost of the equipment is $620,000. |
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Winkerbean is obligated to pay Whispering the $1,040,000 upon the delivery and installation of the equipment. |
Whispering delivers the equipment on June 1, 2017, and completes the installation of the equipment on September 30, 2017. The equipment has a useful life of 10 years. Assume that the equipment and the installation are two distinct performance obligations which should be accounted for separately.
Assuming Whispering does not have market data with which to determine the standalone selling price of the installation services. As a result, an expected cost plus margin approach is used. The cost of installation is $35,700; Whispering prices these services with a 20% margin relative to cost.
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(a)
How should the transaction price of $1,040,000 be allocated among the service obligations? (Do not round intermediate calculations. Round final answers to 0 decimal places.)
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7.
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Ivanhoe Ranch & Shamrock is a distributor of ranch and farm equipment. Its products range from small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company catalog and Internet site. However, given some of its specialty products, select farm implement stores carry Ivanhoe’s products. Pricing and cost information on three of Ivanhoe’s most popular products are as follows.
| Item |
|
Standalone
Selling Price (Cost) |
|
| Mini-trencher |
|
$ 3,900 |
($2,000 |
) |
| Power fence hole auger |
|
1,400 |
(800 |
) |
| Grain/hay dryer |
|
13,400 |
(11,800 |
) |
Respond to the requirements related to the following independent revenue arrangements for Ivanhoe Ranch & Shamrock.
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On January 1, 2017, Ivanhoe sells 50 augers to Mills Farm & Fleet for $70,000. Mills signs a 6-month note at an annual interest rate of 12%. Ivanhoe allows Mills to return any auger that it cannot use within 50 days and receive a full refund. Based on prior experience, Ivanhoe estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Ivanhoe’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entry for Ivanhoe on January 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts.)
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On August 10, 2017, Ivanhoe sells 15 mini-trenchers to a farm co-op in western Minnesota. Ivanhoe provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Ivanhoe compared to the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met. Prepare the journal entry for Ivanhoe on August 10, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amounts. Round intermediate calculations to 6 decimal places, e.g. 1.246576 and final answers to 0 decimal places, e.g. 5,125.)
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Ivanhoe sells three grain/hay dryers to a local farmer at a total contract price of $43,400. In addition to the dryers, Ivanhoe provides installation, which has a standalone selling price of $1,000 per unit installed. The contract payment also includes a $1,100 maintenance plan for the dryers for 3 years after installation. Ivanhoe signs the contract on June 20, 2017, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2017, and full payment is made to Ivanhoe. Prepare the journal entries for Ivanhoe in 2017 related to this arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No entry” for the account titles and enter 0 for the amount
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Liz2021-07-22 10:29:562021-10-07 09:36:21help with acc 305 hwThe point of this field activity and analysis assignment is to get you to start critically thinking about and watching the different kinds of sales efforts that we are confronted with every day. The more attention you place on these daily interactions, the more you can learn from them, realize what techniques are being utilized, and consider how you could adapt them to improve your sales strategies. During the next few weeks, you will need to go to or be involved in 3 sales establishments/ situations/transactions of any kind – retail, wholesale, internal or external sales, distributor, etc. Note and critique the salesperson's technique how they/their techniques addressed the following questions: What kind of an opening was used? Were questions used? How was the sales pitch? FAB or something else? What kind of a trial close (if any) was used? How was the close (if things got that far?). What lessons can you learn from what you experienced? Your 3- to 5-page write-up, 1- to 1.5-pages for each experience, should summarize the key points to each of the 6 questions above for each experience. Follow APA format and support your perspective with a minimum of two sources.
Describe in detail how the ethical culture of this nonprofit organization contributes to its organizational strategy.
Give and justify one reason why the strategy for a for-profit company could be supported by creating an ethical culture similar to that of Goodwill. Give and justify one reason why a for-profit company might have difficulty creating such a culture.
Put together a case presentation based on one of the following options: case from the text book Managing Information Technology case based on The Adventures of an IT Leader case from real work situation (must be pre-approved) Follow a problem-solving approach. You will play the role of consultant assuming you have been hired by the organization to: Provide objective opinion of the situation (specific details below) Provide realistic options for actions for the organization. Final project includes two artifacts: Presentation – can be done in PowerPoint, Google Docs presentation, or other presentation software readable by the instructor. Each slide should include lecture notes – i.e., what would you say if you were actually presenting this? Make sure each slide summarizes the general idea – you do NOT want to be reading slides to your audience. Summary report – maximum length of 10 double-spaced pages. Can include copies of tables and diagrams used in presentation, but they must be cited according to APA guidelines. Describe the current situation. The problem/and or opportunity, depending upon which case you have chosen. The solution and justification for why you’ve chosen that solution. An evaluation of the solution and how it will be effective in solving the problem or leveraging the opportunity.
Assignment 2: Defining Needs Assessment
Training is a fundamental component to any organization. Organizations spend thousands of dollars each year to train and develop employees. Many of the programs do not produce the desired result of increased productivity.
Using the Argosy University online library resources, research factors to determine how needs assessments benefit organizations.
Write a 6-8 page paper addressing the following items:
- Define needs assessment
- Determine the cost-effectiveness of companies conducting need assessments
- Identify steps companies can employ to modify ineffective training programs that are not cost effective
- Discuss the role that technology, computer based training, webinars, etc, play in determining the cost effectiveness of training programs.
- Explain the steps or guidelines which can be utilized to help guide the successful implementation of a training program
Minimum of three (3) peer-reviewed, scholarly sources, within the last ten (10) years, not including the text material.
Use the following file naming convention: LastnameFirstInitial_M2_A2.doc.
By Wednesday, March 1, 2017, deliver your chart to the M2: Assignment 2 Dropbox.
Time management skills are especially important for students.Managing your time will be an important part of your success as astudent. Some important elements of time management includeprioritizing, creating a plan, scheduling time to study,establishing routines, learning to delegate, and setting realisticgoals.
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You have a friend that just started back to school to complete herbachelor’s degree. She is worried that she will not have enoughtime in her already busy days to complete the reading assignmentsand written assignments. What advice would you give her? Identifyat least two elements of time management and discuss how she coulduse them to help manage her time better.
You must create one initial post (due Day 3) and at least tworesponses (due Day 7), for a minimum of three posts for thisdiscussion. QUESTION TITLE :- EXP 105 Week 1 DQ 2
Consider a homogeneous product duopoly where each firm initially produces at
Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $200 and there are no fixed costs. Determine what would happen to each firm’s equilibrium output and profits if firm 2’s marginal cost increased to $210 but firm 1’s marginal cost remained constant at $200 in each of the following settings:
a. Cournot duopoly.
b. Sweezy oligopoly
Consider a homogeneous product duopoly where each firm initially produces at
Case study scenario:
A manager from a unit told her a nurse coming in to her shift to please go help at the pediatric ICU department because they are short staff. The nurse response was I have no experience in pediatrics or critical care unit. The manager responded to a staff crisis but is it a safe decision.
- What are some questions the nurse should ask herself before accepting this assignment? Include your rational.
Be sure to apply concepts from the readings and research. You must cite at least one source: your textbook, scholarly resources, or ATI textbook in APA Style.
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