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Orlov [11]
3 years ago
5

GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv

ance. GreenLawnâs general journal entry to record this transaction will include a:
Multiple Choice

Debit to Unearned Revenue for $60,000.

Credit to Cash for $60,000.

Credit to Unearned Revenue for $60,000.

Debit to Accounts Receivable for $60,000.

Credit to Accounts Receivable for $60,000.
Business
1 answer:
Dvinal [7]3 years ago
8 0

Answer:

Credit to Unearned Revenue for $60,000.

Explanation:

Journal Entry of $60,000 for 6-months services in advance ia as follow:

                                        Dr.                     Cr.

Cash                           $60,000

Unearned Revenue                             $60,000

Services are not performed by GreenLawn Co. so the amount received will be considered as a liability and It will be named as unearned revenue. Cash received will be debited to the cash account. After the performance of service  of each month the revenue will be recognized and transferred from unearned revenue account to service revenue account.

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Determine if the people in the example have benefited (i.e., are winners) or have been harmed (i.e., are losers) by unexpected i
nevsk [136]

Answer:

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.
  • Herb, who keeps his savings in an old coffee can.
  • Joy, who has borrowed $40,000 to pay her college education.
  • The US federal government which had almost $15 trillion in debt in 2011.

Explanation:

When unexpected inflation occurs, the usual plan to by Monetary Institutions of a country is raising the interest rates.

By doing that, they want to stop it or slowly decelerate it.

So that it becomes more expensive to take a loan, the idea is to reduce consumption.

In Economics, it's a bad scenario after all. Few winners. Many losers.

So, let's examine them

Winners

  • 3rd National, a bank that loaned many people money for home purchases.

At first, The 3rd National is going to be winning since the value of the debt will rise, depending on the type of contract and an increase in the interest rate will demand corrections on the monthly payments. But on the other hand, the number of default clients and overdue installments will raise for sure.

Losers

  • Karen, a retired school teacher that relies upon her fixed pension to pay for her expenses.

Inflation reduces the real buying value of her checks. And her pension can't grow otherwise this will feed the inflation too.

  • Herb, who keeps his savings in an old coffee can.

Since his money is not invested then He's not having any earning that might give him some compensation. So his money is even more devalued.

  • Joy, who has borrowed $40,000 to pay her college education.

Depending on the contract Joy might be sleepless. Either her monthly payments will become more expensive or She may experience difficulties because of the weekly growing prices.

  • The US federal government had almost $15 trillion in debt in 2011.

Certainly, the president and his secretary will have to address the fact that due to inflation and the chosen medicine make the nation's debt up to the sky. They must renegotiate the payment deadlines.

7 0
3 years ago
Net credit sales = $400,000 Net income = $100,000 Average total assets = $80,000 Average accounts receivable = $20,000 What is t
Romashka [77]

Answer:

73 days

Explanation:

average collection period = number of days in a period / receivables turnover

receivables turnover = revenue / average receivables = $100,000 / $20,000 = 5

average collection period = 365 / 5 = 73 days

I hope my answer helps you

5 0
3 years ago
How do sales skimming schemes leave a victim organization's books in balance, - despite the theft of funds?
erastovalidia [21]
The money is skimmed before the transaction is processed. In a casino the casinos winning are moves to a count room during the movement money is removed before being counted.
3 0
3 years ago
Tangible property is property that can be _______ and _______ possessed. (choose two correct answers)
givi [52]

Tangible property is the property that can be identified by the senses, it can be seen and possessed.

What is Tangible property?

  • To distinguish it from intangible property, tangible property is defined in law as essentially everything that can be felt.
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  • The term "choices in possession" refers to physical property in English law and several Commonwealth legal systems.

To learn more about Tangible property, refer to the following link:  

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4 0
2 years ago
__________ Is not just for technology companies. Haemonetics, a blood management solutions company, purchased Hemerus Medical wh
aliina [53]

Answer:

B) Innovation by Acquisition.

Explanation:

<u>Innovation by Acquisition </u>Is not just for technology companies.

We can analyze this statement from the example contained in the question above. For the acquisition of Hemerus Medical, by Haemonetics, a blood management solutions company, provided access to innovative blood collection and storage techniques.

Therefore, the acquisition innovation strategy is effective in all organizational segments, as the acquisition of a new company can give access to new forms of operation, new technologies, methods and procedures that will guarantee the innovation and the improvement of the systems of a company. organization.

8 0
3 years ago
Read 2 more answers
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