Answer: Debit Unearned fees $6,120, Credit Fees income $6,120.
Explanation: Garcia Publishing received $24,480 from Otisco on April 1 and this was recorded as unearned fees. This means Garcia would have debited cash with $24,480 and credited unearned fees $24,480. Remember the fees was paid at the beginning of April and is for 36-month subscriptions. So, the amount in unearned fees would be unwound to income (fees) over the tenor of the subscription (36 months). Therefore, monthly amortization would be $24,480 divided by 36 months = $680. April 1 to December 31 is 9 months, $680 multiplied by 9 months is $6,120.
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Answer:
$100
Explanation:
The computation is shown below;
We know that
Cost of material used = Beginning balance of raw material inventory + purchase made during the month - ending balance of raw material inventory
$900 = Beginning balance of raw material inventory + $1,000 - $200
$900 = Beginning balance of raw material inventory + $800
So, the Beginning balance of raw material inventory would be
= $900 - $800
= $100
Answer:
$860,000
Explanation:
If Clement correctly recognised $43,000 in royalty revenue inecember which are based on Global's estimate of July - December, $43,000 is 5% of the sales value they are estimating. So using simple proportion, we can get the sales value. (using 5% = 0.05 and 100% = 1)
1/0.05 * 43,000 = $860,000
