Calculate the amount of revenue

Assignment Help Accounting Basics
Reference no: EM132500045

Question - A company with a 31 December year-end sells goods to a customer on 1 January 20X7 on the understanding that the customer will pay £5,000 immediately, and will then pay two further instalments of £5,000 each at annual intervals. Assuming an effective interest rate of 10% pa, calculate the amount of revenue which should be recognised in the years 20X7, 20X8 and 20X9, and the resulting accounting treatment of this transaction for the years ended 31 December 20X7, 20X8 and 20X9.

Reference no: EM132500045

Questions Cloud

Explain how the nursing process is utilized to provide safe : Explain how the nursing process is utilized to provide safe and effective care for cancer patients across the life span. Your explanation should include each.
Providing a critique of individual ideas : Encourage students to expand their thinking through reading and sharing of ideas - Select a peer reviewed journal article on some area of business process
What kinds of irregularities is theater trying to prevent : This ticket is handed to another person at the entrance to the movie. What kinds of irregularities is the theater trying to prevent
Which account provides the highest effective annual return : Account Y has an annual percentage rate of 12.20 percent with interest compounded continuously. Which account provides the highest effective annual return?
Calculate the amount of revenue : Assuming an effective interest rate of 10% pa, calculate the amount of revenue which should be recognised in the years 20X7, 20X8 and 20X9
How current research supports the picot : A literature review analyzes how current research supports the PICOT, as well as identifies what is known and what is not known in the evidence.
What would be the Greens maximum allowable education credit : Eric's, 1st year of college. They have no education expenses for themselves. What would be the Greens maximum allowable education credit
What is the required adjusting entry at December : The total amount received was credited to deferred subscriptions revenue. What is the required adjusting entry at December 31, 2016
What is Finks revenue from insurance premiums : Fink Insurance collected premiums of $18,000,000 from its customers during the current year. What is Finks revenue from insurance premiums

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd