Questions from Financial Reporting

Q: Maffett Ticket Brokers is a reseller of tickets to sporting events and

Maffett Ticket Brokers is a reseller of tickets to sporting events and concerts. During 20X1, Maffett sold gift cards totaling $250,000. Based on past experience, Maffett expects that 1% of the gift c...

Q: Barrios Communications is a provider of satellite television services. It will

Barrios Communications is a provider of satellite television services. It will install a satellite dish free of charge for any customer that agrees to a one-year service contract at a price of $50 per...

Q: AT&T Inc. is a global provider of telecommunications,

AT&T Inc. is a global provider of telecommunications, media, and technology services. The following information was taken from AT&€™s Form 10-K for the year ended December 31, 2018....

Q: Target adopted the new leasing standard for the year ended February 2

Target adopted the new leasing standard for the year ended February 2, 2019, using themodified retrospective approach outlined in ASC Topic 842. All questions relate to the yearended February 2, 2019...

Q: Posa Hotels, Inc., has a sixth-night-free

Posa Hotels, Inc., has a sixth-night-free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to earn a free stay, on average the number of free nig...

Q: On July 1, 20X1, Grams Construction, Inc., agreed

On July 1, 20X1, Grams Construction, Inc., agreed to construct a factory for a customer. The contract called for payments to Grams totaling $2 million. Grams has correctly determined that it is approp...

Q: On January 1, 20X1, Skinner Equipment Company leased equipment used

On January 1, 20X1, Skinner Equipment Company leased equipment used in mineral extraction operations to Erickson Corporation. The monthly base rental fee was $250,000. In addition, at the end of the y...

Q: Ball Data Corporation provides stock market data to investors. On January

Ball Data Corporation provides stock market data to investors. On January 1, 20X1, it sells a customer access to its real-time database for two years at a price of $600,000. The customer has the right...

Q: Smith, Inc., produces and sells clothing to department stores.

Smith, Inc., produces and sells clothing to department stores. Its supply arrangement with Leftwich Department Stores calls for Smith to purchase from Leftwich each month in-store advertising at a cos...

Q: Dale Golf Course, Inc., operates golf courses in South Carolina

Dale Golf Course, Inc., operates golf courses in South Carolina. A round of golf at one of Dale’s courses costs $75. Dale also sells one-year season passes, good for unlimited rounds of golf for a sin...