Question: James Williams a star college basketball player received a contract
James Williams, a star college basketball player, received a contract from the Midwest Blazers to play professional basketball. The contract calls for a salary of $420,000 a year for four years, dependent on his making the team in each of those years. Should this contract be considered a liability and recorded on the books of the basketball team? Why or why not?
Answer to relevant QuestionsWhen would a commitment be recognized in the accounting records?Is increasing payables turnover good or bad for a company? Why or why not?On the last day of October, Lake Company borrows $60,000 on a bank note for 60 days at 12 percent interest. Interest is not included in the face amount. Prepare the following journal entries: (1) October 31, recording of ...A contract calls for a lump-sum payment of $30,000. Find the present value of the contract, assuming that (1) The payment is due in five years and the current interest rate is 9 percent; (2) The payment is due in ten years ...Austin Corporation’s management took the following actions, which went into effect on January 2, 2014. Each action involved an application of present value.a. Austin Corporation enters into a purchase agreement that calls ...
Post your question