BUSINESS COLLEGE

E18-8 (LO2,3) (Determine Transaction Price) Aaron’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $100 on January 2, 2017. In addition, Aaron will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Aaron does not have any remaining performance obligations. Based on Aaron’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behavior will change. Instructions (a) Determine the transaction price of the arrangement for Aaron, assuming 100 policies are sold.

(b) Determine the revenue that Aaron will recognize in 2017.

Answers

Answer 1

Answer:

Answer:

Explanation:

Transaction price is the amount expected to be payed either as wages or revenue in respect of a service delivered.

Commission per policy = $100

Additional commission = $10

Estimated renewal years (based on experience) =4.5 years

Number of policies sold = 100

a)Transaction price

Commission = 100*100 =$10000

Commission on renewal = (100*4.5*10)= $4500

Total transaction price = 10000+4500 = $14500

Revenue for 2017.

In IAS 18 , revenue are recognized when earned.

Therefore the revenue recognized for the year 2017 will be the revenue earned and due to be received and not a future revenue.

The revenue recognized = 100*100 = $10,000

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Answers

Answer:

Alpha

Beta

Delta

Epsilon

Zeta

Explanation:

The customers list should be updated and sorted periodically to identify regular customers and those customers with big orders. There are many customers in the list and the list is not sorted according to alphabetical order. Those customers which account for more than or at least 5% of total trade are Alpha, Beta, Delta, Epsilon and Zeta. These are place first in list among other customers.

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Answers

Answer:

Explanation:

It is mentioned in the question that the boss who is a big supporter of the president fired Jason, who works as a waiter in the restaurant

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Hence, the answer is no

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Answers

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Answers

Answer:

Explanation:

December 31, 2018 Amount. Interest Rate Total Interest expense $944,646 x 5.0% = $47,232.3 Cash. $870,000 x 5.5% = $47,850 of premium on bonds $618

June 30, 2019AmountInterest Rate

Total Interest expense $944,646 x 5.0% = $47,232.3

Cash$870,000 x 5.5% = $47,850

of premium on bonds $ 464 No Date General Journal Debit Credit 1 June 30, 2018 Cash 944,646 Bonds payable 870,000 Premium on bonds payable 74,646 December 31,2018 Interest expense 47,232.3 Premium on bonds payable 618 Cash 47,850 June 30, 2019 Interest expense 47,232.2 Premium on bonds payable 618 Cash 47,850 Record the issuance of the bond on June 30, 2018.Record the interest on December 31, 2018 (at the effective rate). Record the interest on June 30, 2019 (at the effective rate). Explanation 2. December 31, 2018 Interest expense (5% × $944,646) = $47,232.3 Cash (5.5% × $870,000) = $47,850 3.June 30, 2019Interest expense (5% × [$944,646 – $618]) = $47,201.4

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Answers

Answer:

The attached file has the answer required.

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Answers

The buying culture of a place refers to the factors that influence the purchase of goods and services in an environment. The buying culture in my hometown is the value-added culture. This is because the people in my hometown purchase goods and services mainly when they feel that there is a problem it will help them solve.

The value-added buying culture is that wherein the buyer senses that a product will help them to solve a problem that plagues them.

For example, most people in my hometown only go to the pharmacy and clinic when they are sick.

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Therefore, goods are purchased only when they are crucially needed.

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brainly.com/question/20602486

Answer:

Explanation:

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