I'm ready to get this party started! Starting off a little easy, but will progress through the night.
Question 1:
On December 30, Devlin Co. sold goods to Jensen Co. for $10,000, under an arrangement in which (1) Jensen has an unlimited right of return and (2) Jensen’s obligation to pay Devlin is contingent upon Jensen’s reselling the goods. Past experience has shown that Jensen ordinarily resells 60% of goods and returns the other 40%. What amount should Devlin include in sales revenue for this transaction on its December 31 income statement?
Park City uses encumbrance accounting and formally integrates its budget into the general fund’s accounting records. For the year ending July 31, year 1, the following budget was adopted:
Estimated revenues $30,000,000
Appropriations 27,000,000
Estimated transfer to debt service fund 900,000
When Park’s budget is adopted and recorded, Park’s budgetary fund balance would be
Oh yay! Governmental Accounting! I can't wait to learn/review that!
Silly, but, when I took the exam 2 1/2 years ago, I got the higher than average rating for Governmental NFP accounting.. it was my highest category in the whole exam. lol
I got them both right! Phew, maybe there is hope for me yet 🙂
CPA (MA, Non-Reporting)
The difference in winning & losing is most often, not quitting - Walt Disney
B - 33, 71, 79!
A - 32, 61, 70, 83!
R - 33, 58, 73, 69, 81!
F - 47, 78! 🙂
After 3 long years, I'm finally DONE!
I could not have done it without NINJA MCQs.
Used: Roger for his Videos, WTB, and NINJA Audio, Notes and Test Bank.
Macklin Co. entered into a franchise agreement with Heath Co. for an initial fee of $50,000. Macklin received $10,000 when the agreement was signed. The balance is to be paid at a rate of $10,000 per year, starting the next year. All services have been performed by Macklin, and the refund period has expired. Operations started in the current year. What amount should Macklin recognize as revenue in the current year?
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