FOR THESE TWO QUESTIONS A and B, assume the accrual basis of accounting and a year-end of 31 December. Show your calculations! A) Google had the following transactions in 2020: A total of $1,500,000 was billed to clients for accounting services completed. During 2020, a total of $1,300,000 was collected from clients. This included $90,000 in respect of work that was carried out in 2019. In addition, at the end of December 2020, Google was working on the accounting files of five new clients, none of which had been billed. Two contracts, valued at $60,000 each when complete, were only at the early preparation stage. However, the other three, valued at $80,000 each, were completed. Question: What was Google’s accounting services revenue for 2020? b) Apple reported earnings of $15 per share in 2020. The dividend payout ratio was 40%. John Abbott owned 20% of the common shares, received a dividend cheque for $42,500. i) How many shares does John Abbott own? ii) What were Apple's net earnings in 2020?
FOR THESE TWO QUESTIONS A and B, assume the accrual basis of accounting and a year-end of 31 December. Show your calculations!
A) Google had the following transactions in 2020: A total of $1,500,000 was billed to clients for accounting services completed. During 2020, a total of $1,300,000 was collected from clients. This included $90,000 in respect of work that was carried out in 2019. In addition, at the end of December 2020, Google was working on the accounting files of five new clients, none of which had been billed. Two contracts, valued at $60,000 each when complete, were only at the early preparation stage. However, the other three, valued at $80,000 each, were completed.
Question: What was Google’s accounting services revenue for 2020?
b) Apple reported earnings of $15 per share in 2020. The dividend payout ratio was 40%. John Abbott owned 20% of the common shares, received a dividend cheque for $42,500.
i) How many shares does John Abbott own?
ii) What were Apple's net earnings in 2020?
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