When raising prices they need to be careful because it may drive customers away and when lowering them they need to make sure they are still making profits.
The entry that Yacht Doc should make on October 25 is a $200,000 credit to Unearned revenue and a $200,000 debit to Cash.
<h3>What is unearned revenue?</h3>
This is an account that includes amounts that a company has received goods it hasn't sold or services it hasn't given out yet.
Yacht Doc had not yet delivered the yacht nor provided any services and yet they were paid. This will therefore go to the unearned revenue account as a credit because this is a liability account.
Find out more on Unearned revenue at brainly.com/question/24852569.
Answer:
The Service revenue should be recorded on June 30, 2016 adjusting entry is $6,000
Explanation:
According to the given data Service revenue = $12,000 per month
Since services will begin from June 16, thus on June 30, service revenue should be recorded for half month only.
We would calculate the Half month service revenue as follows:
Half month service revenue = $12,000 x 1/2
Half month service revenue
= $6,000
Therefore the Service revenue should be recorded on June 30, 2016 adjusting entry = $6,000
Answer:
To demonstrate the usage of company products and train employees.
Explanation:
The main purpose of the presentations that Keith is providing to the employees of the software company is to impart complete knowledge of the products to the employees. It is of utmost importance that each employee has complete understanding of the products and services provided by the company and know how to use them.
If any employee fails to understand the usage of the product, he will automatically fail to bring progress to the company as a whole.
Answer:
Wayman Corporation
Income Statement for the year ended December 31, 2021
Sales Revenue $460,000
Cost of Goods Sold ($140,000)
Gross Profit $320,000
Operating Expenses
Advertising Expense $40,000
Salaries Expense $50,000
Utilities Expense $60,000
Total operating expense ($150,000)
Operating Income $170,000
Interest Expense ($30,000)
EBT $140,000
Income tax expense ($60,000)
Net Income $80,000