Managerial significance of the accounting

Assignment Help Accounting Basics

Reference no: EM13153413

Brooke Bennett Marina has 300 available slips that rent for $900 per season. Payments must be made in full at the start of the boating season, April 1, 2008. Slips for the next season may be reserved if paid for by December 31, 2008. Under a new policy, if payment is made by December 31, 2008, a 5% discount is allowed. The boating season ends October 31, and the marina has a December 31 year-end. To provide cash flow for major dock repairs, the marina operator is also offering a 25% discount to slip renters who pay for the 2009 season.

For the fiscal year ended December 31, 2007, all 300 slips were rented at full price. Two hundred slips were reserved and paid for for the 2008 boating season, and 60 slips were reserved and paid for for the 2009 boating season.

Instructions:

a. Prepare the appropriate journal entries for fiscal 2007.

b. Assume the marina operator is unsophisticated in business. Explain the managerial significance of the accounting above to this person.

Reference no: EM13153413

Questions Cloud

Explain computation of the value of the portfolio : An error of .01 in the computation of the short interest rate, approximately what error do you expect to make in the computation of the value of the portfolio?

Define oxygen a person consume at every breath : Assume every breath a person took is 0.5L of air, figure out how many grams of Oxygen you consume at every breath. Now assume that you breathe 30 times per second, figure out how long it took for you to consume all the oxygen in a sealed room of 1..

What is the probability that he makes at least two : He is fouled attempting a three-point shot and is awarded three free throws. Assuming each free throw is independent, what is the probability that he makes at least two of the free throws?

Did the flasks that visually had the most dead cells : Did the flasks that visually had the most dead cells in them have significantly more cells stain blue when Trypan Blue was added than the flasks that appeared healthy (The answer is NO).

Managerial significance of the accounting : Prepare the appropriate journal entries for fiscal 2007. Assume the marina operator is unsophisticated in business. Explain the managerial significance of the accounting above to this person.

Recognized gain on the sale : The buyer paid him $110,000 in cash, agreed to take the title subject to the $190,000 mortgage, and agreed to pay him $80,000 with interest at 9 percent one year from the date of sale. How much is Louis' recognized gain on the sale?

What are expectation and variance for distribution and pmf : Only 40% of these eruptions last longer than 2 minutes. For each of the following random variables, write down the distribution and the PMF. (Identify all parameters) What are the expectation and variance?

Unique challenges that hospitals face : What are some of the unique challenges that hospitals face when attempting to create a supportive organizational culture

What is the marginal propensity to expend : if income were hypothetically $0 aggregate expenditures would be $2,500. What is the marginal propensity to expend?

User Account

All Pages