Your bank account has 3,500 in it. You add 2,000 to your account because someone gave it to you. That will leave you with 5,500 But, its time for you to make out your monthly bills. So take your 5,500 in your account and subtract 2,500. it will leave you with a cash balance of 3,000.
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Answer:
D. Debit Deferred Revenue and credit Service Revenue for $12,000.
Explanation:
Total Subscription receipt for one year = 400 x $90 = $36,000
Number of months accrued = December 31, 2021 - September 1, 2021 = 4 months
Revenue accrued = Total Revenue x (Number of Months accrued / 12) = $36,000 x (4/12) = $12,000
So the correct option is D. Debit Deferred Revenue and credit Service Revenue for $12,000.
The answer to the following question is d services
Answer:
Refer To The attached screen shot. It contains the Income Statement Prepared under Absorption Costing.
Explanation:
Absorption Costing assumes that the Manufacturing Costs include Direct Material, Direct Labor, Variable Overhead, and Fixed Overhead. Whereas, Selling and Administrative Expenses are classified as period Costs. These period costs are recognized in the period in which they are incurred. On the other hand, the manufacturing costs are recognized when the goods on which the costs were incurred are sold. That's why we don't recognize $78,000 as a Fixed Overhead because these overhead costs were incurred to produce 6,000 rackets. We have to calculate the fixed overhead cost per unit and multiply it with the units sold.
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