its own hardware or that of another accounting services company. In addition to the cost of the agreement, Garrett incurred $15,000 early in the year devising a plan for its accounting software needs, $25,000 for customiz

Accounting Beach Life Ltd. operates an online booking service restricted to beachfront properties around the world. Users of the company’s website booked beach rentals totalling $7,990,000 in 2020. Bookings are fully paid for at the time of reservation and are 50% refundable if the reservation is cancelled any time up to 21 days before the reservation date. After that date, the reservations are non-cancellable.Under the terms of the company’s listing agreements with property owners, Beach Life charges a fee of 10% of the total reservation and electronically transfers the balance of cash collected directly to the property owner’s bank five days before the reservation date.Of the 2020 bookings, 90% had been completed before Beach Life’s December 31 year end. The balance was still within the cancellation period.(a1) Determine how much revenue Beach Life would be able to recognize in 2020. Revenue recognized on 2020   $

The controller for Riverbed Corporation has reached an agreement with Concord Financing Ltd. to sell a large portion of Riverbed's past-due accounts receivable. Riverbed agrees to sell $1,950,000 of accounts receivable to Concord with recourse. Riverbed's controller estimates that the fair value of Riverbed's liability to pay Concord for uncollectible accounts is $177,000. Concord will charge Riverbed 7% of the total receivables balance as a financing fee, and will withhold an initial amount of 8%. (a) - Your answer is partially correct Calculate the net proceeds and the gain or loss on the disposal of receivables to Concord Financing Ltd Net proceeds 1657500 Loss on disposal of receivables $ 233500 i

Larkspur Inc. was incorporated in 2019 to operate as a financial service firm, with an accounting fiscal year ending April 30. Larkspur's primary product is a sophisticated online investment management system; its customers pay a fixed fee plus a usage charge for using the system. Larkspur has leased a large, GenX computer system from the manufacturer. The lease calls for a monthly rental of $24,500 for the 144 months (12 years) of the lease term. The estimated useful life of the computer is 14 years. All rentals are payable on the first day of the month beginning with April 1, 2020, the date the computer was installed and the lease agreement was signed. The lease is non-cancelable for its 12-year term, and it is secured only by the manufacturer's chattel lien on the GenX system. This lease is to be accounted for as a finance lease by Larkspur, and the asset will be amortized by the straight-line method. Borrowed funds for this type of transaction would cost Larkspur 6% per year (0.5%…