Assume you are the accounting manager for Logan’s Landscaping & Design.  On December 1,  2013, Logan Karver, the owner,  presents you with a check for $15,000 from a customer, Anna DeJuliet, to do a landscape design at her residence as soon as the ground thaws in the spring of 2014.  No work on this project can be done until then.  Logan wants you to deposit the check and include the $15,000 in the 2013 income statement.  He is expecting to include the $15,000 in his 2013 net income in order to secure a loan from the bank in January 2014 for some new equipment.  Explain how this check should be accounted for and why. (short answer)

Delicious Dinners (DD) is a business entity which offers online cooking classes. Customers pay an annual fee to participate in weekly cooking classes.   In early 2021 DD made the decision that their existing customer relationship management database could no longer support their business.  DD developed a design and plan to create their own CRM software system.  During the application and development stage of the new CRM system DD correctly followed GAAP and capitalized $2,000,000.  DD completed the project in July 2021.  The CRM system worked very well for DD after the completion of the project.  In January 2022 DD the CEO of DD proposed that the CRM system the company developed also could be marketed to other online companies. The company has developed a plan to sell annual licenses to other companies for  the CRM system for $24,000 per year.   In February 2022 DD sold 4 annual licenses for the CRM system that the company developed to other companies.  The 4 businesses all paid DD…

Nicole Mackisey is thinking of forming her own spa business, Nicole's Getaway Spa (NGS). Nicole expects that she and two family members will each contribute $10,000 to the business and receive 1,000 shares each. Nicole forecasts the following amounts for the first year of operations, ending December 31, 2021: Cash on hand and in the bank, $2,250; amounts due from customers from spa treatments, $1,790; building and equipment, $71,000; amounts owed to beauty supply outlets for spa equipment, $4,670; notes payable to a local bank for $38,970. Cash dividends of $3,000 will be paid to the stockholders during the year. Nicole also forecasts that first-year sales revenues will be $43,600; wages will be $24,500; the cost of supplies used up will be $7,500; office expenses will be $5,500; and income taxes will be $1,700. Required: Based on Nicole's estimates, prepare a (forecasted) CREATE A INCOME STATEMENT, RETAINED EARNINGS AND BALANCE SHEET for Nicole's Getaway Spa for the year ended…

On January 1, 2006, a graduate student developed a 5-year financial plan which would provide enough money at the end of her graduate work (January 1, 2011) to open a business of her own. Her plan was to deposit $8,000 per year for 5 years, starting immediately, into an account paying 10 percent compounded annually. Her activities proceeded according to plan except that at the end of her third year (1/1/09) she withdrew $5,000 to take a Caribbean cruise, at the end of the fourth year (1/1/10) she withdrew $5,000 to buy a used Prelude, and at the end of the fifth year (1/1/11) she had to withdraw $5,000 to pay to have her dissertation typed. Her account, at the end of the fifth year, was less than the amount she had originally planned on by how much? Group of answer choices $15,373 $16,550 $32,290 $38,352 $13,975