User Account

All Pages

What amount should Blue Spruce report as a liability

Assignment Help Financial Accounting
Reference no: EM133098742

Question - Blue Spruce Stamp Corporation records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. The stamps can be collected and then redeemed for discounts on future purchases from Blue Spruce as an incentive for repeat business. Blue Spruce's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Blue Spruce's liability for stamp redemptions was $15,340,000 at December 31, 2019. The cost of redemptions for stamps sold prior to January 1, 2020 was $7,080,000. If all the stamps sold in 2020 were presented for redemption in 2021, the redemption cost would be $6,136,000. What amount should Blue Spruce report as a liability for stamp redemptions at December 31, 2020?

Reference no: EM133098742

Questions Cloud

Calculate over or under billings for a company : Calculate over or under billings for a company with the following information: Job Name: Beatty Street Condos Current Contract Amount: $736,000
What is her holding period return in percent : Juanita invested $66 in the stock market. She earned $7.8 in cash dividends. Her investment is now worth $77.3. What is her holding period return in percent
Identify and reflect on the three developmental goals : Identify and reflect on the three developmental goals. You set these three SMART goals at the beginning of the year and you reflect on what steps you have taken
What should be the entry in the partnership book : If Joan is admitted as partner paying P50,000 in exchange of 50% of Johnny's equity, what should be the entry in the partnership book
What amount should Blue Spruce report as a liability : The redemption cost would be $6,136,000. What amount should Blue Spruce report as a liability for stamp redemptions at December 31, 2020
Unethical behavior concerning ceo pay : Please write the answer to the question in bullet points after reading the summary about CEO salary.
Decrease labor turnover and absenteeism : Imagine that you manage a fast-food franchise. If you wanted to decrease labor turnover and absenteeism, would you (A) INCREASE PAY RATES OR (B) ROTATE, ENLARGE
What is the expected value of the provision : The entity's experience with warranty claims is that 60% of all cars sold in a year have zero defect, What is the expected value of the provision
Questions for reflection : 1. Why is it beneficial for all employees to increase their self-awareness?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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