Answer:
C. Unearned revenue would be debited for $700.
E. Service revenue would be credited for $700.
Explanation:
As we recieve the payment in-advance we take the obligation to perform our duties with the customer.
Therefore it is unearned revenue (liability)
at year-end there is a portion which is still unearned by the amount of 300 dollars Hence, the difference was earned: 1,000 - 300 = 700
we will decrease our liability against the customer and recognize the revenue by crediting service revenue.
The euro is the common currency across Europe.
Answer:
a. $58,400
Explanation:
A discounted note, will make the person receive a lesser amount than the amount due at maturity. This way the person who grants the note is receiving interest for borrowing.
<em><u>Calculations</u></em>
principal x discount rate x time = discount
<em><u>Where</u></em> rate and time should be expressed in the same metric IE if the rate is annual express time in portion of years if it is monthly, in months.
60,000 x 0.08 x 120/360 = 1,600
Now, we subtract this amount form the nominal:
nominal - discount = net
60,000 - 1,600 = <u>58,400</u>
Answer: d. Rent Revenue, Fees Earned, Miscellaneous Expense
Explanation:
Temporary accounts are also referred to as nominal accounts and they are the accounts that are closed when the year ends and began afresh the following accounting period and they basically relates to fees, expenses and gains.
From the options above, the answer will be option D "Rent Revenue, Fees Earned, Miscellaneous Expense"
Answer:
C. His opportunity cost of one watermelon is 2/3 of a cantaloupe.
Explanation:
Opportunity cost refers to units of production sacrificed of one good to produce an extra unit of another good.
In the given case, for every 1 unit of Cantaloupe, a farmer is required to sacrifice the production of 1.5 units of watermelon.
This means, production of 1 cantaloupe = production of 1.5 water melons.
Thus, to produce an additional unit of watermelon, sacrifice of 1/1.5 cantaloupe is required.
This means, the farmer's opportunity cost of one watermelon in the form of cantaloupe sacrificed is 2/3 of a cantaloupe.
