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Dominik [7]
3 years ago
13

On July 1, 2017, Blossom Co. pays $10,960 to Blue Insurance Co. for a 2-year insurance policy. Both companies have fiscal years

ending December 31. Journalize the entry on July 1 and the adjusting entry on December 31 for Blue Insurance Co. Blue uses the accounts Unearned Service Revenue and Service Revenue
Business
1 answer:
rodikova [14]3 years ago
7 0

Answer:

Debit    Unearned Revenue  $5,480

Credit    Revenue                   $5,480

Explanation:

On December 31, 6 months has been passed so, the revenue of 6 months should be recorded as the payment was recorded as unearned revenue on July 1. The revenue account will be credited by the 6 months revenue amount and unearned revenue account will be debited to reduce the amount by the six month accrual.

Total Unearned revenue = $10,960

Unearned revenue per month = $10,960 / 12 = $913.33

revenue for six months = 913.33 x 6 = $5,480

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Answer:

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Explanation:

Giving the following information:

You have been offered a project paying​ $300 at the beginning of each year for the next 20 years. The rate of return is 9%.

To calculate the present value, first, we need to calculate the final value:

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