Customers pay $50 to play a room and receive a 40% off their next visit. As at December 31, 2020, 80,000 tickets were issued and say only 25,000 coupons were redeemed. Other entertainment-based business suggests that normally 20% of coupons get redeemed. Company recorded the initial sale at $50. When the sale gets reported on the income statement net of discount. Is this correct and what would the adjusting entry have to be made? Not for profit organization- ASNPO a) ABC received a $20,000 grant from City of Toronto, to be spent on assets necessary for the sale. WC spent $18,500 so far ; $16,500 on tables, which will last for 10 years and $12000 on promotional signs, which will last for five years. The grant must be fully used by December 31, 2020. Currently this is all recorded as $20,000 as revenue and $18,500 as expenses. What options do we have in order to record these items? How will the different options affect what is recorded as expenses in current year. In addition, the organization has never received a restricted grants, so do they recognize the full amount of revenue this year?
a) Customers pay $50 to play a room and receive a 40% off their next visit. As at December 31, 2020, 80,000 tickets were issued and say only 25,000 coupons were redeemed. Other entertainment-based business suggests that normally 20% of coupons get redeemed. Company recorded the initial sale at $50. When the sale gets reported on the income statement net of discount. Is this correct and what would the
Not for profit organization- ASNPO
a) ABC received a $20,000 grant from City of Toronto, to be spent on assets necessary for the sale. WC spent $18,500 so far ; $16,500 on tables, which will last for 10 years and $12000 on promotional signs, which will last for five years. The grant must be fully used by December 31, 2020. Currently this is all recorded as $20,000 as revenue and $18,500 as expenses. What options do we have in order to record these items? How will the different options affect what is recorded as expenses in current year. In addition, the organization has never received a restricted grants, so do they recognize the full amount of revenue this year?
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