Please help with the questions, thanks. Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adultcustomers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs fromDecember 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. Thecompany's fiscal year ends on December 31.On November 6, 2021, Jake Lawson purchased a season pass for $450.Required:1. When should Ski West recognize revenue from the sale of its season passes?2. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.3. What will be included in the Ski West 2021 Income statement and balance sheet related to the sale of the season pass to JakeLawson?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. (If no entry is required for atransaction/event, select "No journal entry required" in the first account field.)View transaction listJournal entry worksheet<12Record the cash collection.Note: Enter debits before credits.DateNovember 06, 2021Record entryGeneral JournalClear entry< Required 1DebitCreditView general journalRequired 3 > Ski West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adultcustomers also can purchase a season pass that entitles the pass holder to skl any day during the season, which typically runs fromDecember 1 through April 30. Skl West expects its season pass holders to use their passes equally throughout the season. Thecompany's fiscal year ends on December 31.On November 6, 2021, Jake Lawson purchased a season pass for $450.Required:1. When should Ski West recognize revenue from the sale of its season passes?2. Prepare the appropriate Journal entries that Ski West would record on November 6 and December 31.3. What will be included in the Ski West 2021 Income statement and balance sheet related to the sale of the season pass to JakeLawson?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3What will be included in the Ski West 2021 income statement and balance sheet related to the sale of the season pass to JakeLawson?AmountAmountincluded inremaining balance in< Required 2Required 3 >

INTRODUCTION: According to the revenue recognition principle established by accrual accounting, a…

Skl West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to skl any day during the season, which typically runs from December 1 through April 30. Skl West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2021, Jake Lawson purchased a season pass for $450. Required: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the appropriate Journal entries that Ski West would record on November 6 and December 31. 3. What will be included in the Ski West 2021 Income statement and balance sheet related to the sale of the season pass to Jake Lawson?

Skl West, Inc., operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to skl any day during the season, which typically runs from December 1 through April 30. Skl West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2021, Jake Lawson purchased a season pass for $450. Required: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the appropriate Journal entries that Ski West would record on November 6 and December 31. 3. What will be included in the Ski West 2021 Income statement and balance sheet related to the sale of the season pass to Jake Lawson?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 10E: WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily...

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Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $65. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31. On November 6, 2024, Jake Lawson purchased a season pass for $350. Required: When should Ski West recognize revenue from the sale of its season passes? Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. What will be included in the Ski West 2024 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company's fiscal year ends on December 31. On November 6, 2024, Jake Lawson purchased a season pass for $450. Required: 1. When should Ski West recognize revenue from the sale of its season passes? 2. Prepare the appropriate journal entries that Ski West would record on November 6 and December 31. 3. What will be included in the Ski West 2024 income statement and balance sheet related to the sale of the season pass to Jake Lawson? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What will be included in the Ski West 2024 income statement and…
Ski West, Incorporated, operates a downhill ski area near Lake Tahoe, California. An all-day adult lift ticket can be purchased for $85. Adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from December 1 through April 30. Ski West expects its season pass holders to use their passes equally throughout the season. The company’s fiscal year ends on December 31. On November 6, 2024, Jake Lawson purchased a season pass for $445. Required:When should Ski West recognize revenue from the sale of its season passes?Prepare the appropriate journal entries that Ski West would record on November 6 and December 31.What will be included in the Ski West 2024 income statement and balance sheet related to the sale of the season pass to Jake Lawson?
WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily admission tickets, WaterWorld offers two other ticket options. First, it offers an annual pass for 600 that allows unlimited access to the aquarium and theme park for one year from the date of purchase. In addition, it offers a Summer Fun Pass that allows unlimited access to the waterpark for June, July, and August for 450. Both pass options require full payment at the time of purchase. On April 1, 2019, WaterWorld entered into a contract with a customer to purchase an annual pass. On that same date, it entered into another contract with a customer to purchase a Summer Fun Pass. Required: 1. Prepare WaterWorlds journal entries in 2019 related to the annual pass. 2. Prepare WaterWorlds journal entries related to the Summer Fun Pass.
WaterWorld Inc. operates an aquarium and water park in Orlando, Florida. In addition to daily admission tickets, WaterWorld offers two other ticket options. First, it offers an annual pass for $600 that allows unlimited access to the aquarium and theme park for one year from the date of purchase. In addition, it offers a Summer Fun Pass that allows unlimited access to the waterpark for June, July, and August for $450. Both pass options require full payment at the time of purchase. On April 1, 2019, WaterWorld entered into a contract with a customer to purchase an annual pass. On that same date, it entered into another contract with a customer to purchase a Summer Fun Pass. Required: 1. Prepare WaterWorld’s journal entries in 2019 related to the annual pass. 2. Prepare WaterWorld’s journal entries related to the Summer Fun Pass.
Veras Bus Transportation provides on-campus bus services for universities. On January 1, it enters into a one-year contract with Moose University to operate five bus lines traveling throughout the campus. Under the contract, Veras will be paid $110,000 on the last day of each month. In addition, Veras will receive an additional $130,000 at the end of each six-month period, provided it remains free of accidents. On January 1, based on historical experience, Veras estimated that there is a 70% chance that it will remain free of accidents for the entire year. On March 20, three of the most senior drivers at Veras abruptly left. As a result, Veras had to hire inexperienced drivers to fill the vacant positions. Consequently, Veras revised its estimate to a 30% chance that it would be entitled to receive the semiannual bonus and decided to continue this 30% probability estimate until its six-month review at the end of June. On June 30, Moose confirmed that there was no accident between…
Veras Bus Transportation provides on-campus bus services for universities. On January 1, it enters into a one-year contract with Moose University to operate five bus lines traveling throughout the campus. Under the contract, Veras will be paid $114,000 on the last day of each month. In addition, Veras will receive an additional $134,000 at the end of each six-month period, provided it remains free of accidents. • On January 1, based on historical experience, Veras estimated that there is a 75% chance that it will remain free of accidents for the entire year. • On March 20, three of the most senior drivers at Veras abruptly left. As a result, Veras had to hire inexperienced drivers to fill the vacant positions. Consequently, Veras revised its estimate to a 25% chance that it would be entitled to receive the semiannual bonus and decided to continue this 25% probability estimate until its six-month review at the end of June. ⚫ On June 30, Moose confirmed that there was no accident between…
Blossom Snow Removal Ltd. is a residential and commercial snow removal company Blossom signs contracts with customers for snow removal services that start on November 1 and end on March 30. The company starts signing contracts in the month of September for the winter season. Blossom has a year end on December 31 and had the following transactions involving current liabilities during the year: 1 Blossom signs contracts with customers and requests 100% of the contract price as a deposit at the time of signing. The company signed contracts for snow removal totaling $615,000. Based on past history, Blossom estimates that ane third (1/3) of the contract amount is earned by December 31. 2 Blossom has 10 employees, who are on standby in the event it snows. The employees earn gross wages of $125.000 for the year. From this, the company deducted 15% for income taxes, $6,813 in CPP premiums, and $1,975 in El premiums before distributing the pay cheques to the staff. As an employer, Blossom was…
Hawks Storage Inc. rents storage space to students in the Waterloo area. The rentals are for a four or eight month period to correspond with students needs for storage during terms that they are home or on work terms. Hawks Storage Inc. has chosen a October 31 fiscal year end and began operations in 2020. During the year ended October 31, 2020 Hawks storage Inc. received customer rental payments as follows: Rentals for the period May 2020-August 2020 $6080 Rentals for the period May 2020-December 2020 $ 10960 Rentals for the period September 2020-April 2021 $16800 Rentals for the period September 2020-December 2020 $ 9760 Hawks Storage Inc. provided the rental space as scheduled. Calculate the amount of rental revenue for the first fiscal year ended October 31, 2020. Round your answer to the nearest dollar. Your Answer:
Flounder Ltd. purchases units of wood frames that have manufacturer's volume rebates from Novak Inc. The rebate requires Flounder to purchase a minimum number of units in a calendar year. The initial unit cost of each wood frame is $3.00 before any rebate. If more than 4,140 units are purchased, the rebate is $0.50 per unit for all units purchased beyond the base amount of 4,140 units. Flounder has a June 30 fiscal year end. By June 30, 2023, Flounder had purchased 2,850 wood frames for the six-month period from January 1, 2023, to June 30, 2023. Flounder estimates that an additional 2,850 wood frames will be purchased from July 1, 2023, to December 31, 2023. Flounder's management is very confident that this estimate will be confirmed by future purchases from Novak. (b) Your Answer Correct Answer Your answer is correct. Calculate the amount of any rebate that Flounder should accrue at June 30, 2023, assuming the rebate cannot be cancelled by Novak. (Round answer to 2 decimal places,…
Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $1,300 were presented for redemption during 2021 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January.Required:1. Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually).2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet.3. What is the appropriate classification (current or…
Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $1,300 were presented for redemption during 2021 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January. Required: 1. Prepare the appropriate journal entries (in summary form) for the gift cards and meals sold during 2021 (keeping in mind that, in actuality, each sale of a gift card or a meal would be recorded individually). 2. Determine the liability for gift cards to be reported on the December 31, 2021, balance sheet. 3. What is the appropriate classification (current…