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liq [111]
3 years ago
9

On September 1, 2021, Gold Gaming sold 400 one-year subscriptions to its online gaming website for $90 each. The total amount re

ceived was credited to Deferred Revenue. What would be the required adjusting entry at December 31, 2021?
A. Debit Deferred Revenue and credit Service Revenue for $24,000.
B. Debit Deferred Revenue and credit Service Revenue for $36,000.
C. Debit Service Revenue and credit Deferred Revenue for $24,000.
D. Debit Deferred Revenue and credit Service Revenue for $12,000.
Business
2 answers:
ollegr [7]3 years ago
8 0

Answer:

D. Debit Deferred Revenue and credit Service Revenue for $12,000.

Explanation:

The money received in advance before the deliver of the service is recognized in the books by debiting cash account and crediting deferred revenue. As the service is earned, revenue is credited and deferred revenue debited.

Total amount collected = $90 × 400 = $36,000

Monthly revenue = 1/12 × $36,000 = $3,000

Revenue earned between September and December = 4 × $3,000

= $12,000

Entries required

D. Debit Deferred Revenue and credit Service Revenue for $12,000.

wlad13 [49]3 years ago
5 0

Answer:

D. Debit Deferred Revenue and credit Service Revenue for $12,000.

Explanation:

Total Subscription receipt  for one year = 400 x $90 = $36,000

Number of months accrued = December 31, 2021 - September 1, 2021  = 4 months

Revenue accrued = Total Revenue x (Number of Months accrued / 12) = $36,000 x (4/12) = $12,000

So the correct option is D. Debit Deferred Revenue and credit Service Revenue for $12,000.

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5 0
2 years ago
"The gross earnings of factory workers for Dinkel Company during the month of January are $400,000. The employer's payroll taxes
Zepler [3.9K]

Answer and Explanation:

The Journal entry is shown below:-

Factory labor Dr, $480,000

        To Factory wages payable $400,000

        To Employee payroll taxes payable $80,000

(Being factory labor cost is recorded)

Here we debited the factory labor as it increased the expenses and we credited the factory wages payable and employee payroll taxes payable as it also increased the liabilities

3 0
3 years ago
Hugh is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in Saudi Arabia!
Mila [183]

The type of Job that Hugh has to look for should be the one that can pay him by commission.

<h3>What is a commission?</h3>

This is the money that a person is paid after they have brokered a deal. The commission is the money.

This is the service charge that Hugh is going to charge to his clients whenever he helps them.

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8 0
1 year ago
Granger Company had January 1 inventory of $150,000 when it adopted dollar-value LIFO. During the year, purchases were $900,000
Lisa [10]

Answer:

$624, 750

Explanation:

Purchases = 900,000

Sales = 1500000

Price index = 110%

Inventory= 189750

1,500,000 - [{($150,000 x 110%) + $900,000} - $189,750]

=1,500,000 - [($150,000 x 1.1) + $900,000] - $189,750

= 1,500,000 - (1065000 - 189750)

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3 years ago
_______ are combating competitive pressures by increasing the amount of exclusive and private label merchandise, strengthening c
notka56 [123]

Answer: B: Department stores

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