Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman’s boats will be kept in identified slips in the marina. However, Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45-foot slips per boat for a three-year period. Warren frequently rearranges its customers’ boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Lucky Fisherman Fleet paid $20,500 on March 1, 2021, for the first year’s accommodations. The market rate of interest is 6%. Required: Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement

Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman’s boats will be kept in identified slips in the marina. However, Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45-foot slips per boat for a three-year period. Warren frequently rearranges its customers’ boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Lucky Fisherman Fleet paid $20,500 on March 1, 2021, for the first year’s accommodations. The market rate of interest is 6%. Required: Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter11: Environmental Regulation And Sustainability

Section: Chapter Questions

Problem 9QAP

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Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman’s boats will be kept in identified slips in the marina. However, Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45-foot slips per boat for a three-year period. Warren frequently rearranges its customers’ boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Warren paid $16,000 on March 1, 2021, for the first year’s accommodations. The market rate of interest is 5%.Required:Prepare the appropriate entry(s) for Lucky Fisherman Fleet at March 1, the commencement of the agreement.
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers’ boats. Lucky Fisher Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisher’s boats will be kept in identified slips in the marina. Warren has the right to shift the boats to other slips within its marina at its discretion, subject to the requirement to provide 45-foot slips per boat for a three-year period. Warren frequently rearranges its customers’ boats to meet the needs of new contracts. Costs of reallocating space is low relative to the benefits of being able to accommodate more customers and their specific requests. Lucky Fisher paid $16,000 on March 1, 2024, for the first year’s accommodations. The market rate of interest is 5%. Required: Prepare the appropriate entry(s) for Lucky Fisher Fleet at March 1, the commencement of the agreement.
Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren contracts with boat owners to provide slips to house the customers' boats. Lucky Fisherman Fleet contracted with Warren to provide space for four of its fishing boats. The contract specifies that Lucky Fisherman's boats will be kept in identified slips in the marina. The agreement includes the requirement that Warren provide 45-foot slips per boat for a three-year period, space that Lucky Fisherman can modify with fenders, docklines, and equipment needed to conduct its fishing business. Warren cannot switch locations of the boats or modify the slips without Lucky Fisherman's consent. Lucky Fisherman Fleet paid $21,000 on March 1, 2021, for the first year's accommodations. The market rate of interest is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate entry(s) for Lucky Fisherman…
Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled materials on Dan's various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Rex's incurs selling commission costs of $2,000 to obtain the contract. Before performing the services, Rex's also designs and builds receptacles and loading equipment that interfaces with Dan's demolition equipment at a cost of $27,000. These receptacles and equipment are retained by Rex's and can be used for other projects. Dan's promises to pay a fixed fee of $12,000 per year, payable every 6 months for the services under the contract. Rex's incurs the following costs: design services for the receptacles to interface with Dan's equipment $3,000, loading equipment controllers $6,000, and special testing and OSHA inspection fees $2,000 (some of Dan's projects are on government…
Rex's Reclaimers entered into a contract with Dan's Demolition to manage the processing of recycled materials on Dan's various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Rex's incurs selling commission costs of $2,000 to obtain the contract. Before performing the services, Rex's also designs and builds receptacles and loading equipment that interfaces with Dan's demolition equipment at a cost of $27,000. These receptacles and equipment are retained by Rex's and can be used for other projects. Dan's promises to pay a fixed fee of $12,000 per year, payable every 6 months for the services under the contract. Rex's incurs the following costs: design services for the receptacles to interface with Dan's equipment $3,000, loading equipment controllers $6,000, and special testing and OSHA inspection fees $2,000 (some of Dan's projects are on government…
Jason's Reclaimers entered into a contract with Gary's Demolition to manage the processing of recycled materials on Gary's various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Jason's incurs selling commission costs of $2,180 to obtain the contract. Before performing the services, Jason's also designs and builds receptacles and loading equipment that interfaces with Gary's demolition equipment at a cost of $25,100. These receptacles and equipment are retained by Jason's and can be used for other projects. Gary's promises to pay a fixed fee of $12,850 per year, payable every 6 months for the services under the contract. Jason's incurs the following costs: design services for the receptacles to interface with Gary's equipment $3,220, loading equipment controllers $6,400, and special testing and OSHA inspection fees $2,180 (some of Gary's projects are on…
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Def Jam Productions contracts with Mainstreet Carrollton (the owner of a nearby parking lot) to provide overflow parking for Def Jam's concert Friday night at the Amp in Carrollton. Their contract contains a provision that states, "In the event the lot is not vacated by Saturday morning in time for the breakfast crowd to arrive at the local restaurants, Def Jam will pay damages in the amount of $1,000." It is difficult to calculate the amount of damages for loss of parking in the lot because it varies from day-to-day, but it ranges from approximately $500 on a slow weekday to $2,000 on the busier weekend days. The damages provision in this contract is 1) a penalty clause. O 2) a liquidated damages clause. 3) an example of consequential damages. 4) a confiscation of property.
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Bramble's Steelers Inc. (BSI) is a steel manufacturing company located in Ontario. On November 1, 2021, BSI acquired land on which it constructed a facility for steel manufacturing purposes. Since its manufacturing process produces excessive waste, the government of Ontario has imposed a requirement for BSI to clean up property. As part of its agreement with the province of Ontario, BSI is allowed to operate on this site for only 15 years after which time BSI estimates it will need to incur $2,000,000 to clean up the site. Bramble went ahead with the construction of the building and recognized the asset retirement obligation at that time. The company's discount rate is 4% and BSI reports under IFRS with a December 31 year-end. (a) What adjusting journal entry should BSI have made to initially recognize the ARO under IFRS? (For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 0.52750 and round final answer to 0 decimal places, e.g. 5,275. Credit…
Sage Reclaimers entered into a contract with Pronghorn Demolition to manage the processing of recycled materials on Pronghorm various demolition projects. Services for the 3-year contract include collecting, sorting, and transporting reclaimed materials to recycling centers or contractors who will reuse them. Sage incurs selling commission costs of $2,180 to obtain the contract. Before performing the services, Sage also designs and builds receptacles and loading equipment that interfaces with Pronghorn demolition equipment at a cost of $25,100. These receptacles and equipment are retained by Sage and can be used for other projects. Pronghorn promises to pay a fixed fee of $12,850 per year, payable every 6 months for the services under the contract. Sage incurs the following costs: design services for the receptacles to interface with Pronghorn equipment $3,220, loading equipment controllers $6,400, and special testing and OSHA inspection fees $2,180 (some of Pronghorn projects are on…
Sandhill Windows manufactures and sells custom storm windows for three-season porches. Sandhill also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Sandhill enters into the following contract on July 1, 2025, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Sandhill to do the installation. Sandhill charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $534. The customer pays Sandhill $2,136 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2025, Sandhill completes installation on October 15, 2025, and the customer pays the balance due. Prepare the journal entries…