Larkspur’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $103 on January 2, 2017. Larkspur will receive an additional commission of $9 each year for as long as the policyholder does not cancel the policy. After selling the policy, Larkspur does not have any remaining performance obligations. Based on Larkspur’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years after the first year before terminating their insurance policy. It has no evidence to suggest that previous policyholder behavior will change.Determine the revenue that Larkspur will recognize in 2017.

Swifty’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $90 on January 2, 2020. In addition, Swifty will receive an additional commission of $8 each year for as long as the policyholder does not cancel the policy. After selling the policy, Swifty does not have any remaining performance obligations. Based on Swifty’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years, which results in an expected policy life of 5.5 years. It has no evidence to suggest that previous policyholder behavior will change. (a)Determine the transaction price of the arrangement for Swifty, assuming 120 policies are sold. (Round answer to 0 decimal places, e.g. 5,125.) Transaction price   $    (b) Determine the revenue that Swifty will recognize in 2020

Swifty’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $90 on January 2, 2020. In addition, Swifty will receive an additional commission of $8 each year for as long as the policyholder does not cancel the policy. After selling the policy, Swifty does not have any remaining performance obligations. Based on Swifty’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years, which results in an expected policy life of 5.5 years. It has no evidence to suggest that previous policyholder behavior will change. (a)Determine the transaction price of the arrangement for Swifty, assuming 120 policies are sold. 15120 b)Determine the revenue that Swifty will recognize in 2020. (Round answer to 0 decimal places, e.g. 5,125.) Revenue   $  1964 or 1963.64 is incorrect.

Nash’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $116 on January 2, 2020. In addition, Nash will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Nash does not have any remaining performance obligations. Based on Nash’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years, which results in an expected policy life of 5.5 years. It has no evidence to suggest that previous policyholder behavior will change.   Determine the transaction price of the arrangement for Nash, assuming 75 policies are sold. (Round answer to 0 decimal places, e.g. 5,125.) Transaction price   $ 12,075 Determine the revenue that Nash will recognize in 2020. (Round answer to 0 decimal places, e.g. 5,125.) Revenue   $

Aaron's Agency sells an insurance policy offered by Capital Insurance Company for a commission of $100 on January 2, 2020. In addition, Aaron will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Aaron does not have any remaining performance obligations. Based on Aaron's significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behavior will change. Instructions a. Determine the transaction price of the arrangement for Aaron, assuming 100 policies are sold. b. Determine the revenue that Aaron will recognize in 2020.

(Determine Transaction Price) Aaron’s Agency sells an insurance policy offered by Capital Insurance Company for a commission of $100 on January 2, 2017. In addition, Aaron will receive an additional commission of $10 each year for as long as the policyholder does not cancel the policy. After selling the policy, Aaron does not have any remaining performance obligations. Based on Aaron’s significant experience with these types of policies, it estimates that policyholders on average renew the policy for 4.5 years. It has no evidence to suggest that previous policyholder behaviorwill change.Instructions(a) Determine the transaction price of the arrangement for Aaron, assuming 100 policies are sold.(b) Determine the revenue that Aaron will recognize in 2017.

On January 1, 2011, Michael August signed an agreement to operate as a franchisee of Ivan Steven for an initial franchise fee of P2,000,000. The amount of P800,000 was paid when the agreement was signed, and thebalance is covered by a non-interest bearing note payable in five annual payments of P240,000 each, beginning January 1, 2012. The agreement provides that the downpayment is not refundable and that no future services are required of the franchisor. The franchisee’s credit rating indicates that he can borrow money at 11% for a loan of this type. The present value of an ordinary annuity of 1 at 11% for five periods is 3.69590.Requirements: Determine the amount that Ivan Steven should record as revenue from franchise fee on January 1,2011.   On December 1, 20x1, CANOROUS Co. granted a 5-year franchise right to MELODIOUS, Inc. for an initial franchise fee of ₱400,000 and a 10% sales-based royalty. The initial franchise fee is non-refundable and due upon signing of the contract. At…

North Corp. has an employee benefit plan for compensated absences that gives employees 10 paid vacation days and 10 paid sick days. Both vacation and sick days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days; however, no payment is given for sick days not taken. At December 31, 2016, North’s unadjusted balance of liability for compensated absences was $21,000. North estimated that there were 150 vacation days and 75 sick days available at December 31, 2016. North’s employees earn an average of $100 per day. In its December 31, 2016, balance sheet, what amount of liability for compensated absences is North required to report? a. $15,000 b. $21,000 c. $22,500 d. $36,000

On October 2, 2020, Ivanhoe Company sold $5,630 of its elite camping gear (with a cost of $3,320) to Lynch Outfitters. As part of the sales agreement, Ivanhoe includes a provision that if Lynch is dissatisfied with the product, Ivanhoe will grant an allowance on the sales price or agree to take the product back (although returns are rare, given the long-term relationship between Ivanhoe and Lynch). Ivanhoe expects total allowances to Lynch to be $760. On October 16, 2020, Ivanhoe grants an allowance of $400 to Lynch because the color for some of the items delivered was a bit different than what appeared in the catalog.     Prepare journal entries for Ivanhoe to record (1) the sale on October 2, 2020, (2) the granting of the allowance on October 16, 2020, and, (3) any adjusting required on October 31, 2020 (when Ivanhoe prepares financial statements). Ivanhoe now estimates additional allowances of $260 will be granted to Lynch in the future. (Credit account titles are…

On January 1, 2011, Michael August signed an agreement to operate as a franchisee of Ivan Steven for an initial franchise fee of P2,000,000. The amount of P800,000 was paid when the agreement was signed, and the balance is covered by a non-interest bearing note payable in five annual payments of P240,000 each, beginning January 1, 2012. The agreement provides that the down payment is not refundable and that no future services are required of the franchisor. The franchisee’s credit rating indicates that he can borrow money at 11% for a loan of this type. The present value of an ordinary annuity of 1 at 11% for five periods is 3.69590.Requirements: Determine the amount that Ivan Steven should record as revenue from franchise fee on January 1, 2011.