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Simora [160]
4 years ago
9

Denny Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or thr

ee-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $900,000 at December 31, 2011 before year-end adjustment. Service contracts still outstanding at December 31, 2011 expire as follows:
Service contracts still outstanding at December 31, 2011 expire as follows:

During 2012 $190,000

During 2013 $285,000

During 2014 $125,000

What amount should be reported as Unearned Service Revenues in Denny's December 31, 2011 balance sheet?

a. $900,000

b. $600,000

c. $1,500,000

d. $300,000
Business
1 answer:
Lapatulllka [165]4 years ago
8 0

Answer:

b. $600,000

Explanation:

Amount to be reported =  Outstanding service contracts for 2012, 2013 and 2014

=$190,000 + $285,000 + $125,000

=$600,000

$600,000 should be reported as unearned service  revenues in Denny's Co. December 31, 2015 balance sheet.

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Answer:

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Explanation:

Product Life Cycle theory was developed to describe the observed pattern of the international trade. This theory was given by Raymond Vernon and the Product Life Cycle has four stages:

1. The introduction stage: Introducing or launching new product in the local market.

2. The growth stage: Strong demand of products and increase in the sales, which increases the profits. The product are exported to other high-income developed countries.

3. The maturity stage: The production is moved to the developed countries.

4. The decline stage: The production of the products begins moves in the low-wage developing countries.

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Answer:

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5 0
3 years ago
Stuart Weddle's father is 55 years old and wants to set up a cash flow stream that would be forever. He would like to receive $1
kogti [31]

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5 0
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Read 2 more answers
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Minchanka [31]

Answer:

The correct answer is Different.

Explanation:

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Over [174]

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