User Account

All Pages

What amount should camacho report as a liability

Assignment Help Accounting Basics
Reference no: EM132228876

Question - Camacho Trading Stamp Co. records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Camacho's past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Camacho's liability for stamp redemptions was $7,500,000 at December 31, 2017. Additional information for 2018 is as follows:

Camacho Trading Stamp service revenue from stamps sold to licensees - $5,000,000

Cost of redemptions - $3,400,000

If all the stamps sold in 2017 were presented for redemption in 2018, the redemption cost would be $2,500,000. What amount should Camacho report as a liability for stamp redemptions at December 31, 2018?

a. $9,100,000.

b. $6,600,000.

c. $6,100,000.

d. $4,100,000.

Reference no: EM132228876

Questions Cloud

Calculate accrued interest payable that davis should record : The first payment for interest and principal is scheduled for September 1, 2019. At December 31, 2018, Davis should record accrued interest payable of
What amount carlock report for accrued salaries payable : Carlock Company's salaried employees are paid biweekly. At December 31, 2018, what amount should Carlock report for accrued salaries payable
How will issues effect learning or progress on a daily basis : You are a teacher/social worker and you have the children of Dee (11 year old Clare) and Kate (5 year old Elliot) from the individual scenarios.
What amount should be reported as unearned service : What amount should be reported as unearned service contract revenues in Close's December 31, 2015 balance sheet
What amount should camacho report as a liability : The redemption cost would be $2,500,000. What amount should Camacho report as a liability for stamp redemptions at December 31, 2018
Compute the weighted average number of shares : On January 1, 2018, Patrick Corporation had 1,100,000 shares of common stock outstanding. Compute the weighted average number of shares
What amount did williams receive from the bond issuance : Interest is payable semiannually on April 1 and October 1. What amount did Williams receive from the bond issuance
Discuss the proper accounting treatment : Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers
Develop a methodology for assessing the possible validity : Develop a methodology for assessing the possible validity of accusations of sexual abuse or domestic violence in the marriage as a special consideration.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Measuring the general anxiety level of each client

As part of a 2-week treatment for phobias, a therapist measured the general anxiety level of each client four times: before, after 1 week of treatment.

  P20-8 comprehensive 2-year worksheet glesen company

p20-8 comprehensive 2-year worksheet glesen company sponsors a defined benefit pension plan for its employees. the

  Zzz c signed a lease agreement to use an equipment for 5

zzz c. signed a lease agreement to use an equipment for 5 years with the payment of 10000 present value 43295. the

  Create a data flow diagram of the current system

reate a data flow diagram of the current system. -  Create a system flowchart of the existing system.- . Identify the internal control weaknesses in the system.

  Relationship between smiling and happiness

Your research can contribute to theory on the relationship between smiling and happiness by addressing a) or b). Addressing c) is a completely different matter. c) involves identifying constructs that also cause happiness.

  What amount may brunettes deduct

The bonus was awarded at the December board meeting based on Vera's threat to accept a better paying job with a competitior. What amount may Brunettes deduct?

  Amount of contract costs incurred

What is the amount of contract costs incurred during the year ended December 31, 2012?

  Calculate the net present value and profitability index

BAK Corp. is considering purchasing one of two new diagnostic machines. Calculate the net present value and profitability index of each machine

  Food stamps are distributed by governments to qualified

1. the state enacts a statewide business tax to fund general governmental operations. will collection ofthe tax be an

  Compute the direct labor rate variance

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months

  Calculate the material price and usage variances for month

Beta Company produces two products, A and B, each of which uses materials X and Y. Calculate the material price and usage variances for the month

  Purchase as an asset-adjusting entry required

On November 1, 2011, Schumacher Company paid $1,200 in advance for an insurance policy that covered the company for six months. Assuming that Schumacher recorded this purchase as an asset, the adjusting entry required on December 31, 2011 would in..

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