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solniwko [45]
3 years ago
7

Seadrill Engineering sold software to oil-drilling firms. In addition to providing the software, the company also provides consu

lting services and support for 5 years to ensure smooth operation of the software. The total transaction price is $350,000. Based on standalone values, the company estimates the consulting services and support have a value of $150,000 and the software license has a value of $250,000. Seadrill generally records software sales using Sales Revenue account and consulting service using Service Revenue account. Assuming the performance obligations are not interdependent, the journal entry to record the transaction includes:A) a credit to sales revenue for $250,000 and a credit to unearned service revenue of $100,000.B) a credit to service revenue of $100,000.C) a credit to unearned service revenue of $100,000.D) a credit to sales revenue of $350,000.
Business
1 answer:
mr Goodwill [35]3 years ago
7 0

Answer:

a credit to sales revenue for $250,000 and a credit to unearned service revenue of $150,000

Explanation:

The Journal entry is shown below:-

Cash Dr, $400,000

        To Sales revenue $250,000

       To unearned service revenue $150,000

(Being cash receipts is recorded)

The unearned revenue from service is the revenue in which the customer has paid the money, and the company does not provide the services. Acceptance of the money for the warranty which has been extended. The seller expects to continue to provide the services.The income will not be gained from this, because the company will not be reported until the company refuses to deliver the services in the future.

For recording this we debited the cash as it increased the assets and credited the sales revenue and unearned service revenue as it increased the revenue and liability

This is the answer but the same is not provided in the given options  

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The project manager building a swimming pool and clubhouse at a retirement community is reviewing the chronological sequence of
solniwko [45]

The technique that's employed by the project manager is PERT technique.

<h3>What is a project?</h3>

It should be noted that a project simply means a work that's carried out in order to achieve a desired goal.

In this case, since the manager is reviewing the chronological sequence of activities that must be completed on the project, he's using the PERT technique.

Learn more about project on:

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4 0
2 years ago
Genevieve is a member of the board of directors and the chief financial officer of The Shoe Fits, Inc. Under the duty of care sh
iren2701 [21]

Answer:

B. oversee every aspect of the business, including such things as ordering merchandise and arranging for janitorial services

Explanation:

6 0
3 years ago
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of
myrzilka [38]

Answer:

Chevrolet Dealership

A) The total cost of the entire inventory is:

= $575,000

B) Each inventory would be reported at the LCNRV:

Inventory Items  Quantity  Reporting Cost/Value

Vans                        4              NRV

Trucks                     7              NRV

2-door sedans        3              Cost

4-door sedans        5              Cost

Sports cars              1              Cost

SUVs                       6              NRV

C) Journal Entry:

Debit Cost of goods sold $27,000

Credit Inventory $27,000

To write-down costs to net realizable values.

D) TRUE.

Explanation:

a) Data and Calculations:

Inventory Items  Quantity    Cost per unit      NRV per Unit      LCNRV

Vans                        4           27000 $108,000      25000        $100,000

Trucks                     7            18000   126,000       17000           119,000

2-door sedans        3           13000     39,000      15000            39,000

4-door sedans        5           17000     85,000     20000            85,000

Sports cars              1          37000      37,000     40000            37,000

SUVs                       6         30000    180,000     28000           168,000

Total Cost                                      $575,000                         $548,000

3 0
3 years ago
Amounts withheld from each employee for social security and medicare vary by state.
satela [25.4K]

It is False.

No matter which states the employee lives, the amounts withheld from each employee for social security and medicare do not vary by state. The present tax rate for social security for employers and employees is 6.2% and the present current rate of medicare is 1.45% for both the employer and employee.

Employers are typically required to withhold Social Security and Medicare taxes from an employee's paycheck and pay the employer's share of those taxes.

The Social Security Tax and the Medicare Tax have different rates, and only the Social Security tax has a salary cap. The base salary ceiling is the maximum taxable salary in the year. Determine the withholding amount for Social Security and Medicare contributions by multiplying each payment by the employee's tax rate.

To learn more about social security and medicare from given link

brainly.com/question/19277833

#SPJ4

3 0
2 years ago
Comprehensive income is defined as: Net income plus other comprehensive income. Changes in equity for a period resulting from al
SVEN [57.7K]

Answer: Changes in equity for a period from all sources except those by non-owner sources.                            

Explanation: In simple words, comprehensive income refers to those transactions that were not realized before so they later get recorded in the income statement.

These transactions usually results in increase in shareholders equity. Usually such transactions involve unrealized gain or loss from available for sale securities or foreign currency transactions.

8 0
3 years ago
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