MGT220H5 Chapter Notes - Chapter 6: Consignee, Consignor, Measurement Uncertainty
Document Summary
Under a consignment sales arrangement, revenue is recognized under the earnings approach a) upon shipment of the merchandise to the consignee. B) upon receipt of the merchandise by the consignee. D) upon receipt by the consignor of notification of the sale. On january 1, 2011, calce co. leased a building to firmino corp. for a ten-year term at an annual rental of ,000. At inception of the lease, calce received ,000 covering the first two years" rent of ,000 and a security deposit of ,000. This deposit will not be returned to firmino upon expiration of the lease but will be applied to payment of rent for the last two years of the lease. Shen constructors, ltd. has consistently used the percentage-of-completion method of recognizing income. In 2010, shen started work on a ,000,000 construction contract that was completed in 2011. The following information was taken from shen"s 2010 accounting records: A) ,000 b) ,667 c) ,000 d) ,333.
