Pacific Airlines Co. awards members of its Frequent FliersClub one free round-trip ticket, anywhere on its flight system,for every 50,000 miles flown on its planes. Howwould you account for the free ticket award?
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Pacific Airlines Co. awards members of its Frequent Fliers
Club one free round-trip ticket, anywhere on its flight system,
for every 50,000 miles flown on its planes. How
would you account for the free ticket award?
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- AF has a frequent flyer program, “Flying Blue,” which allows members to acquire“miles” as they fly on Air France or partner airlines that are redeemable for freeflights or other benefits.a. How does AF account for these miles?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.In 2020, the CEO of Crimson, Inc., entertains 14 clients at a skybox in Memorial Stadium for a single athletic event during the year. Substantive business discussions occurred at various times during the event. The box cost $2,850 per event and seats 16 people. (The cost of a regular, nonluxury box seat at Memorial ranges from $65 to $130.) Refreshments served during the event cost $920 (and were separately itemized on the bill Crimson received). How much of these costs may Crimson deduct?
- On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers. The candy bars sell for 3 per bar. In addition, AwakcAllNight pays Campus Grocers a 900placement fee to ensure that its candy bars are always stocked prominently by the cash register. The 900 is paid at the end of each month based on the results of random inspections of Campus Grocers by AwakcAllNight to ensure that the terms of the contract are being followed. Required: 1. Determine the transaction price for Awake AllNights revenue contract. 2. Prepare AwakeAllNights journal entries to recognize sales revenue and pay Campus Grocers the placement fee.In May 2021, Reginald graduated from the Naval Academy with a degree in aeronautical engineering and was assigned to Pensacola, Florida as a permanent duty station. In his move to Pensacola, Reginald incurred the following costs: $485 in gasoline. $271 for renting a truck from UPAYME rentals. $114 for a tow trailer for his car. $99 in food. $32 in double espressos from Starbucks. $342 for motel lodging on the way to Pensacola. $454 for a previous plane trip to Pensacola to look for an apartment. $203 in temporary storage costs for his collection of sports memorabilia. Required: If the government reimburses him $900, how much, if any, may Reginald take as a moving expense deduction on his 2021 tax return? Moving expense deductionJesse's Pool sells a special family season pass package for 5500. The package allows unlimited use of the Indoor pool from Oct 1, 2023 to May 31, 2024 (8) months); the pass normally sells $400. In addition, the purchaser gets 3 towels that would normally sell for $ 100. And lastly the package includes 10 coupons that give 30% off purchases of food while at Jesse's Pool. It is expected that 80% of the coupons will be used, and the average purchase would be $25. Jessie sold 10 packages on 10/1/2023 giving the passes, towels and coupons to the purchasers. By the end of the year, 20 of the 100 coupons had been redeemed (Jessie records the revenue in adjusting entries). (round to the nearest $1) Instructions: Record the (1) sale of the 10 packages on Oct 1. Be sure to show your work. Work (required and graded) Identify the Performance Obligations (PO's What value is allocated to each of these PO's? Oct 1 Entry Acct and Amount Debit Account and Amount Credit Record the adjusting entry as of…
- Mandren Inc. has a fire insurance policy from the Blundi Insurance Company with a 90% coinsurance clause based on replacement cost. The replacement cost of the building is $600,000. The face amount of the policy Mandren purchases is $400,000. If a covered loss in the amount of $550,000 occurs, how much will Mandren collect from their insurer?Ernest works for a clothing manufacturer as a dress designer. During 2022, he travels to New York City to attend five days of fashion shows and then spends three days sightseeing. His expenses are as follows: Airfare $1,800 Lodging (8 nights) 2,000 Meals at local restaurants (8 days) 1,440 Airport Uber ride 100 Assume lodging/meals are the same amounts for the business and personal portion of the trip ($250 per day for lodging and $180 per day for meals). He has proper substantiation for each item. As an employee and assuming no reimbursement, what amount is deductible on his personal return in 2022? Show detail for each item. If he was an independent contractor, what amount would be deductible on his personal return in 2022? Show detail for each item. For item b: is this amount FOR or FROM AGI?Mulroy Inc. is a company that owns 5 car dealerships. On October 25, 2021 the owner, Jack Mulroy pledged to contribute a new Ford Explorer to a local charity’s raffle for their annual fundraiser. The fundraiser will be held on November 30, 2021 at which time the car will be delivered to the winner of the raffle. Mulroy, Inc. delivered the Ford Explorer as pledged to the winner on November 30, 2021. The accountant for Mulroy is unsure if the Contribution should be recognized as an expense in October when the pledge was made or in November when the car was delivered. Accounting Issue: When should Mulroy recognize the contribution? Your Interpretation of the Guidance: Mulroy Inc. should recognize the contribution in October 2021 November 2021
- Did Market Thyme break even this season? Remember that each of the families paid a seasonal membership fee of $100.Ms. Landis is the president of Modern Manufacturing. Her company has developed a new 3D printer for use in the construction industry. She has received three offers to purchase this 3D printer technology, as follows: a payment of $500,000 now, followed by annual payments of $120,000 at the end of years 6 through 15. a payment of $900,000 today a series of semiannual payments of $80,000 spread over the next 10 years. The first payment will be received today and the remaining payments will come at the beginning of each semiannual period. Using a required rate of return of 12% per year, calculate the present value of each of the three offers. Based on your answers to part A, which of the three offers should be accepted? That is, which has the largest present value? If the required rate of return were increased to 15% per year, would that change the decision about which offer to accept? Which offer should be accepted at the higher required rate of return?Mark is a company director. His monthly salary is £8,000. During the year 2020-21, he is provided with a petrol-engine car with an emission rating of 112g/km. The car had a list price when new of £28,000 and was registered on 5 February 2019. All fuel and other related costs are paid by the company. The company also provides each of its senior management staff with private insurance cover of £1,800 yearly. Calculate the NICs payable with regard to Mark for 2020-21. Please show all working out in accordance to 2020-21 tax rates.
