1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nignag [31]
3 years ago
15

On October 1, Sponge Bob, Inc. received $240 up front from a customer for a yearly magazine subscription. Magazines are provided

one per month.
Record the following journal entries.
a. Record the initial receipt of payment from the customer on October 1.
b. Record the adjusting entry for three months of magazines provided to the customer by December 31
Business
1 answer:
ddd [48]3 years ago
4 0

Answer:

a.

Oct 1   Cash                                                         $240 Dr

               Unearned Subscription Revenue            $240 Cr

b.

Dec 31   Unearned Subscription Revenue                      $60 Dr

                    Subscription Revenue                                        $60 Cr

Explanation:

a.

The receipt of $240 upfront in advance from a customer is a liability for the business as the business has received cash for service that is yet to be provided. The business will record this as a debit to the cash account and credit to a liability account of  Unearned Service Revenue.

b.

On 31 december, the business has provided magazines for 3 months thus it has earned revenue for 3 months. The revenue for 3 months is,

Revenue per month = 240 / 12 = 20

For 3 months = 20*3  = 60

The business will record this as a credit to the subscription revenue and a debit to the unearned subscription revenue

You might be interested in
Negative items on a credit report that are not correct:
Sav [38]
Answer:
C

Explanation:

Something with a mistake is never best ignored it’s best if they change it and get it corrected.
5 0
3 years ago
The Great Recession, a sharp economic downturn that begun in 2008, brought high unemployment, increased business failures, and a
Molodets [167]

According to Joseph Schumpeter, the stage that is described above is the Recovery stage.

<h3>What happens in the recovery stage?</h3>
  • The country begins to recover from the negative economic conditions of the depression.
  • Signs of stability will begin to appear.

In the recovery stage, economic activity will start to rise as there will be more production of goods and services.

Unemployment will also begin to drop as more companies hire people to produce. They will in turn increase spending which would further stimulate the economy.

In conclusion, this is the recovery stage.  

Find out more on the recovery stage at brainly.com/question/3951038.

8 0
2 years ago
A classified income statement has four major sections—operating revenues, cost of goods sold, operating expenses, and non-operat
Advocard [28]

Answer: False

Explanation:

The statement in the question that a classified income statement has four major sections which are the operating revenues, cost of goods sold, operating expenses, and non-operating revenues and accounts receivables is not true.

It should be noted that a classified income statement is made up of the revenue, the expenses and the non operating revenues and expenses.

3 0
3 years ago
Flem is an employee of Glo Goods, Inc. Flem reports to state officials that Glo is illegally shipping unsafe goods to unsuspecti
Anika [276]

Answer:

With respect to the employment-at-will doctrine, this is "An exception based on public policy"

Explanation:

Under the public-policy exception to employment at will, an employee is wrongfully discharged when the termination violates an explicit, well-established public policy of the state. For example, in most states, an employer can't terminate an employee for filing a workers' compensation claim after being injured on the job, or for refusing to engage in illegal activity at the request of an employer.

Public policy may be found in a state constitution, statute, administrative rule, or other state policy. The public-policy exception is the most commonly accepted exception, recognized in the vast majority of states.

4 0
3 years ago
Bristo Corporation has sales of 1,000 units at $60 per unit. Variable expenses are 40% of the selling price. If total fixed expe
Misha Larkins [42]

Answer:

3.60

Explanation:

Given that,

Sales units = 1,000

Sales price per unit = $60

Variable expenses = 40% of the selling price

Total Fixed cost = $26,000

Contribution margin per unit:

= Selling price - Variable cost

= $60 - ($60 × 40%)

= $60 - $24

= $36

Total contribution:

= Contribution margin per unit × Sales units

= $36 × 1,000

= $36,000

Profit = Total contribution - Fixed cost

         = $36,000 - $26,000

         = $10,000

Degree of operating leverage:

= (Sales - Variable costs) ÷ (Sales - Variable costs - Fixed Expenses)

= (60,000 - 24,000) ÷ (60,000 - 24,000 - 26,000)

= 36,000 ÷ 10,000

= 3.60  

8 0
3 years ago
Other questions:
  • Another view of leadership focuses on a continuum of behavior ranging from a type of leadership with a formal hierarchy and powe
    12·1 answer
  • You are considering purchasing the Zions Bank $4.50 preferred stock. If you require a 4% return on this investment, what should
    5·1 answer
  • Self doubt is a result of ______. a. Having great success b. Lacking self-esteem c. Successful conflict resolution d. An asserti
    8·2 answers
  • According to management guru peter drucker, "the aim of marketing is to ________."
    14·1 answer
  • Ot counting any medical expenses or the cost of a new car, a dwi conviction may carry a total financial cost of __________ or mo
    5·1 answer
  • Suppose the government imposes a price floor of $28 in this market. If the sellers with the lowest cost are the ones who sell th
    5·1 answer
  • Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each c
    9·1 answer
  • LoRider Wheels sells high-quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople
    9·1 answer
  • Charging a lower price per unit for purchases of more units is called
    12·1 answer
  • What is a tax return?
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!