Revenue recognition of brooke bennett marina

Assignment Help Finance Basics

Reference no: EM1332233

1. 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: EM1332233

Questions Cloud

Explain challenges to integrating e-business : Explain Challenges to integrating e-Business and technology management within functional management roles

What reviews would be planned and the schedule : design a Quality Assurance Plan for the project (Keep the QA Plan at about 11 pages or less).What reviews would be planned and the schedule.

Explain if you are traveling to europe in six months : Explain if you are traveling to Europe in six months and you believe the Euro is going to appreciate against the American dollar, list two ways you could hedge this situation and protect yourself against the appreciation.

Police agencies understanding cultural differences : What can police agencies do to better prepare police officers to understand diverse backgrounds and improve communications with people who are not native speakers of English?

Revenue recognition of brooke bennett marina : Brooke Bennett Marina has 300 available slips that rent for $900 per season. Payments should be made in full at the start of boating season, April 1, 2008. Make the appropriate journal entries for fiscal 2007.

Identifying moral problems in the workplace : Identifying and analyzing moral problems in the workplace.

Explain about workplace security : Identify and explain each of these roles and show specifically how the security managers can influence the factors that tend to create liability for an organization.

Explain is it false that the influence that fed policies : Explain is it false that the influence that FED policies have on excess reserves makes a difference.

Attracting applicants for police agencies : What are the recruitment strategies to attract diverse applicants for a police agency?

User Account

All Pages