Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness

image text in transcribed
Rocky Guide Service provides guided 1 to 5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,200 per tour day, and shortly after the end of each month, Rocky learns whether it will receive a $120 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,200 per day and any bonus due are paid in one lump payment shortly after the end of each month. - On July 1 , based on prior experience, Rocky estimated there is a 30% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1 to July 15 - On July 16, based on Rocky's view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 80% chance it would earn the bonus for all July tours. Rocky also guided customers for 15 days from July 16 to July 31. - On August 5, Focky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours. Rocky bases estimates of variable consideration on the most likely amount it expects to receive. Required: 1. Prepare Rocky's July 15 journal entry to record revenue for tours given from July 1 -July 15 . 2. Prepare Rocky's July 31 journal entry to record revenue for tours given from July 16 -July 31 . 3. Prepare Rocky's August 5 journal entry to record any necessary adjustments to revenue and receipt of payment from Wilderness

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

According to Harrill, how should you lead a team writing effort?

Answered: 1 week ago