Big Rock Brewery Inc. is a regional producer of craft beers and cider that are sold in
Question:
Required:
Refer to Note 3.10 in Exhibit 9-7 and in your own words explain how Big Rock accounts for keg deposits.
Transcribed Image Text:
EXCERPT FROM BIG ROCK BREWERY INC. S 2013 ANNUAL REPORT 3.10 Keg Deposits Big Rock requires that customers pay deposits for kegs purchased which are reflected as a liability on the Corpora- tion's consolidated statement of financial position. The deposits are subsequently refunded to customers via invoice credits or cash payments when kegs are returmed. In the normal course of business, there are a percentage of kegs which are never returned for refund. As a result, Big Rock perfoms an analysis based on factors such as total kegs produced, current inventory rates and average keg turnover. In addition, return percentages are calculated and tracked to estimate an average keg turnover rate. Together, this information is used to estimate a keg deposit lability at each reporting date. Any adjustments required to the keg liability account are recorded through revenue.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
Much of the product Big Rick Brewery sells to customers is sold in the kegs in which the beer is sto...View the full answer
Answered By
Anum Naz
Lecturer and researcher with 10+ years of experience teaching courses in both undergraduate and postgraduate levels. Supervised 17 BA theses, 07 MA theses, and 1 Ph.D. dissertations. Edited and co-authored 2 monographs on contemporary trends in political thought. Published over articles in peer-reviewed journals.
4.80+
11+ Reviews
51+ Question Solved
Related Book For
Understanding Financial Accounting
ISBN: 978-1118849385
1st Canadian Edition
Authors: Christopher Burnley, Robert Hoskin, Maureen Fizzell, Donald
Question Posted:
Students also viewed these Accounting questions
-
The Sun River beverage company is a regional producer of teas, exotic juices, and energy drinks. With an interest in healthier lifestyles, there has been an increase in demand for its sugar- free...
-
Explain how Royal Caribbean accounts for customer deposits as passengers purchase cruise tickets in advance.
-
Explain how Carnival Corporation accounts for customer deposits as passengers purchase cruise tickets in advance.
-
Consider two farmers, A and B, produce farm products and sell in the same market. Assume that the supply of the two farmers products are the same but the demand for Farmer Bs product is relatively...
-
Larrys Art Gallery sells oil paintings, lithographs, and bronzes to collectors and corporations. Customers often come to Larry looking for special pieces. In order to meet customer needs, Larry often...
-
An astronaut exercising on a treadmill maintains a pulse rate of 150 per minute. If he exercises for 1.00 h as measured by a clock on his spaceship, with a stride length of 1.00 m/s, while the ship...
-
Thomas and James, who were operating separate competing businesses, decided on 1 July 2025 to form a partnership by contributing cash, assets and liabilities of their respective businesses. At that...
-
Ortiz Company is able to produce two products, G and B, with the same machine in its factory. The following information is available. The company presently operates the machine for a single...
-
1 What is HRM 2 What is Training and Developmnt 3 What is Recruitment 4 What is Selection 5 What is HRP 6 What is Job Analysis 7 What is a Career Planning and Development 8 What is Job-Description 9...
-
Protecting the operating system is crucial to ensuring that the computer system operates correctly. Provision of this protection is the reason behind dual-mode operation, memory protection, and the...
-
Gamehost Inc., a Calgary-based company, operates a number of hotels and casinos in Alberta. Exhibit 9-6 contains Note 5(a) from the companys financial statements for the year ended December 31, 2013....
-
Ten Peaks Coffee Company Inc. is a Burnaby, British Columbiabased specialty coffee company. The company provides green coffee decaffeination services as well as green coffee handling and storage...
-
Soccer continues to grow in popularity as a sport in the United States. High-profile players such as Hope Solo and Landon Donovan have helped generate renewed interest in the sport at various age...
-
You throw snowballs down to the sidewalk from the roof of a building. Which technique, if either, makes the snowballs land with more speed: throwing them straight down as hard as you can or throwing...
-
Is it true that a pebble released from rest off a bridge falls \(9.8 \mathrm{~m}\) in the first second of its fall?
-
Will interpolation between known data points always give an accurate continuous path? If so, explain why. If not, give a counterexample.
-
With about \(20 \mathrm{~min}\) to spare, you walk leisurely from your dorm to class, which is \(1.0 \mathrm{~km}\) away. Halfway there, you realize you have forgotten your notebook and run back to...
-
What minimum information must be extracted from a video clip of a moving object in order to quantify the object's motion?
-
Show that for T = 300 K, about 0.1 percent of the free electrons in metallic silver have an energy greater than E F .
-
On 1 July 2021, Croydon Ltd leased ten excavators for five years from Machines4U Ltd. The excavators are expected to have an economic life of 6 years, after which time they will have an expected...
-
In this simulation, you will address questions related to inventory valuation andmeasurement. KWW Professlonal Simulation Inventory Valuation Time Remaining hour 40 minutes Unsplit Split Horie Spit...
-
Barrick Gold Corporation, with headquarters in Toronto, Canada, is the world??s most profitable and largest gold mining company outside South Africa. Part of the key to Barrick??s success has been...
-
LaTour Inc. is based in France and prepares its financial statements in accordance with IFRS. In 2012, it reported cost of goods sold of $578 million and average inventory of $154 million. Briefly...
-
F. Pierce Products Inc. is financing a new manufacturing facility with the issue in March of $20,000,000 of 20-year bonds with semiannual interest payments. It is now October, and if Pierce were to...
-
Watch the video, Critical Theory, Social Justice and Christianity: Are they Compatible? https://www.youtube.com/watch?v=qnmJX5hEenY&t=2894s&ab_channel=NOBTSApologetics Review the articleThe...
-
Describe an example of a data privacy law or any obstacle to international legislation that pertains to data privacy.
Study smarter with the SolutionInn App