Dan borrowed $745 for a new coffee table. He will make 10 monthly payments of $85 to repay the loan. How much will he pay

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31

Vadim26 [7]

Answer:

1. Assume no other adjusting entries are made during the year a. Tao Co. receives $10,000 cash in advance for four months of legal services on October 1, 2017, and records it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December 31, 2017, and Tao has provided legal services as planned. hat adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2017?

Step 1: Unearned Revenue has a credit balance of $10,000

Step 2: Unearned Revenue should have a credit balance of $2,500 only.

Step 3: Adjusting Journal Entry:

Debit Unearned Revenue $7,500

Credit Service Revenue $7,500

To record revenue for services performed to December 31, 2017.

2. Caden started a new publication called Contest News. Its sub subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month from July through December Assume no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2017, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account pay $24 to receive 12 monthly issues.

Step 1: Unearned Subscription Revenue has a credit balance of $2,400

Step 2: Unearned Subscription Revenue should have a credit balance of only $1,200.

Step 3: Adjusting Journal Entry:

Debit Unearned Subscription Revenue $1,200

Credit Subscription Revenue $1,200

To record subscription revenue for services performed to December 31, 2017.

Explanation:

Tao Co and Caden follow the three-step process of adjusting unearned revenue liability accounts at year-end. The purpose of the steps is to ensure that correct amounts remain as balances in the unearned revenue accounts. The steps also help to adjust the Earned Revenue account to its proper amount in recognition of goods or services provided in accordance with the accrual concept and the matching principle of generally accepted accounting principles.

8 0

3 years ago

Why does the government plan its financial expenditure framework for a period of five years?

drek231 [11]

This is to ensure that they complete the project within the appointed period of time as well as within the budget given to them. It also shows how effective the government is in implementing their projects. If they don’t do so within the period and the budget then people will question their efficiency in completing their assignments and project within the period prescribed.

7 0

4 years ago

Marco wants to cancel his department store credit card so he threw it away after he paid last month's balance. Was this a good i

ANTONII [103]

Answer:

1. No, becuase someone could steal it.

2. No, becuase the fine you get for not paying a bill will grow.

Explanation:

3 0

3 years ago

A point M on a segment with endpoints (-1, 1) and ( 7, 7) partitions the segment in a 3:5 ratio. Find M. You must show all work

HACTEHA [7]

The coordinates of point M after the partition is (2, 3.25).

<h3>What are coordinates and how to determine coordinates?</h3>

A coordinate system in geometry is a system that uses one or more integers, or coordinates, to define the position of points or other geometric components on a manifold such as Euclidean space.

We have: