He Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the member to use the facilities at any time. A one-year membership costs $480 ($480/12 = $40 per month); a two-year membership costs $720 ($720/24 = $30 per month). Cash payment is required at the beginning of the membership period. On July 1, 2014, the company sold a one-year membership and a two-year membership. The company should report as gross income from the two contracts:
(A) $1,200 in 2014.
(B) $960 in 2014.
(C) $180 in 2016.
(D) $780 in 2015.
(E) None of these.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “He Maroon & Orange Gym, Inc., uses the accrual method of accounting. The corporation sells memberships that entitle the member to use the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
How does marriage preeminently show us christ's free, total, faithful, and fruitful love through the gift of his body?
Answers (1)
Noknotsense hair salon incorporated this year and is now an llc. according to the economic entity assumption, the owner of the salon is now required to
Answers (1)
A bond will sell at a premium (above par value) ifA) the market value of the bond is greater than the discount rate of the bond. B) investor's current required rate of return is below the coupon rate of the bond.
Answers (1)
During June, Vixen Fur Company sells $850,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 3% of the selling price.
Answers (1)
An example of short term investment goal would be saving for: A. a house. B retirement C. watching movies. D. tertiary education.
Answers (1)
New Questions in Business
Your firm has $500 million of investor-supplied capital, its return on investors' capital (ROIC) is 15%, and it currently has no debt in its capital structure (i. e., wd = 0).
Answers (1)
Diseconomies of scale imply that the average total cost curve is downward-sloping in the long run. a. True b. False
Answers (1)
Henrich is a single taxpayer. In 2019, his taxable income is $455,000. What is his income tax and net investment income tax liability in each of the following alternative scenarios?
Answers (1)
When a company buys equipment for $150,000 and pays for one third in cash and the other two thirds is financed by a note payable, which of the following are the effects on the accounting equation? A. Total assets decrease $50,000. B.
Answers (1)
Park Corporation issued 10-year bonds with a face value of $10,000,000. The face rate of interest on the bonds was 8%, and Park agreed to make semiannual payments. The market rate of interest at the time the bonds were issued was 6%.
Answers (1)