Required: for each situation, determine the date for which the company recognizes the revenue under accrual-basis accounting.
1. american airlines collects cash on june 12 from the sale of a ticket to a customer. the flight occurs on august 16. august 16. june 12.
2. a customer purchases sunglasses from eddie bauer on january 27 on account. eddie bauer receives payment from the customer on february 2. january 27. february 2.
3. on march 30, a customer preorders 10 supreme pizzas (without onions) from pizza hut for a birthday party. the pizzas are prepared and delivered on april 2. the company receives cash at the time of delivery. march 30. april 2.
4. a customer pays in advance for a three-month subscription to sports illustrated on july 1. issues are scheduled for delivery each week from july 1 through september 30. september 30. revenue would be recognized as each magazine is delivered.

You and your new australian bride matilda, are applying for a loan and are required to submit a balance sheet with your net worth. you own a 2008 toyota camry that you bought last month for $9,995. the kelly blue book value for this car is $13,995. you owe $8,150 on the car loan for the camry. you pay off your visa credit card every month and have not paid any credit card interest this year. the current visa credit card balance is $3,522, and the next statement is due in 15 days. you have a student loan balance of $6,500. you presently have $425 in your checking account and $1,540 in your savings account. you own 100 shares of ibm stock that you purchased for $85.50 per share. one share of ibm is now selling for $158.42. you own computers and other electronics that you purchased for $4,100 but could probably sell today on e-bay for $1,800. your gross income is $80,000 per year. what is your current net worth? (see wb ch. 2 example 2.3)

Which feature is a characteristic of a corporation?

Bdj co. wants to issue new 22-year bonds for some much-needed expansion projects. the company currently has 9.2 percent coupon bonds on the market that sell for $1,132, make semiannual payments, have a $1,000 par value, and mature in 22 years. what coupon rate should the company set on its new bonds if it wants them to sell at par?