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devlian [24]
3 years ago
11

sells subscriptions for $ 120 for 30 issues. The company collects cash in advance and then mails out the magazines to subscriber

s each month. Apply the revenue recognition principle to determine a. when Boston Magazine should record revenue for this situation. b. the amount of revenue Boston Magazine should record for seven issues. a. Boston Magazine should record revenue when ▼ the subscribers. b. Boston Magazine should record $ 28 for seven issues.
Business
1 answer:
s344n2d4d5 [400]3 years ago
3 0

Answer:

Boston Magazine should record revenue when the magazines are delivered  to the subscribers

Boston Magazine should record $28 for seven issues

Explanation:

Revenue should recognized when earned and not when it is received.It is earned when the seller fulfills his obligation by delivering the promised good or service to the buyer.

Hence, the revenue received in  advance should be credited to revenue received in advance account until it is earned

The cost per issue of magazine is $4 ($120/30),so as a result,seven issues would be $28($4*7)

The double to record the seven issues is as follows:

Dr Revenue in advance $28

Cr Revenue                            $28

Henceforth,the value of magazines delivered each is debited to revenue in advance and credited to revenue to show the amount of revenue earned each month

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Sheffield Corp. has 285,000 shares of $8 par value common stock outstanding. It declares a 13% stock dividend on December 1 when
astra-53 [7]

Answer:

285,000 common stock outstanding with a $8 par value

it declares 13% stock dividend

market price at $16

since the stock dividend is considered small (less than 20%), we use the market price to record it

December 1, 202x stock dividends are declared (37,050 stocks)

Dr Retained earnings 592,800

    Cr Common stock dividends distributable 296,400

    Cr Additional paid in capital 296,400

December 31, 202x, distribution of stock dividends

Dr Common stock dividends distributable 296,400

    Cr Common stock 296,400

3 0
3 years ago
Which of the following is TRUE regarding the economic order quantity (EOQ) model? A. Demand rate is dependent on order quantity.
Oduvanchick [21]

Answer:

D. Holding cost per unit per year is dependent on the selling price per unit.

Explanation:

The formulas are shown below:

Economic order quantity:

= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}

The number of orders would be equal to

= Annual demand ÷ economic order quantity

The average inventory would equal to

= Economic order quantity ÷ 2

The total cost of ordering cost and carrying cost equals to

Ordering cost = Number of orders × ordering cost per order

Carrying cost = average inventory × carrying cost per unit

If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit

5 0
3 years ago
Depreciation by Two Methods
lesya [120]

The amount of annual depreciation by the straight-line method is $18,800.

<h3>Annual depreciation</h3>

a.  Annual depreciation

Annual depreciation=[($80,000 - $4,800) ÷ 4]

Annual depreciation=$18,800

b. Annual depreciation

Year 1 Annual depreciation= 10% × $80,000

Year 1 Annual depreciation = $8,000

Year 2 Annual depreciation= 10% × ($75,000 - $7,500)

Year 2 Annual depreciation = $7,520

Therefore the amount of annual depreciation by the straight-line method is $18,800.

Learn more about annual depreciation here:brainly.com/question/16448059

brainly.com/question/24213593

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3 0
2 years ago
To encourage compliance with its labor standards, the ILO relies on all of the following except:A) PublicityB) DiplomacyC) Techn
anygoal [31]

Answer: Option (D)

Explanation:

<em>ILO</em> is abbreviated as <em>International Labour Organization</em> is known as the UN body whose decree is to provide advancement in the social justice and thus also promote the respectable and appropriate work thereby setting and developing the international labour specifications. It is considered as the first specialised body of the United Nations.

ILO does not uses Lawsuits in order to encourage compliance with the labour standards.

8 0
3 years ago
Prime Cuts was the brainchild of Karen Terrier, who guided all the marketing efforts of the product. She made the decisions rega
gulaghasi [49]

Answer: Brand manager

Explanation: It is most likely that Karen serves in the job of brand manager as she is directly responsible for all the elements of the marketing mix (package, brand name, pricing, promotion and placement) for one brand or one product line. A brand manager is defined as one who is responsible for ensuring that the products, services and product lines of a company or business adapts to its target market. They continuously monitor marketing trends while keeping watch on competitive products in the marketplace or industry.

5 0
3 years ago
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