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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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When the price of Nike soccer balls fell, Ronaldo purchased more Nike soccer balls, and fewer Adidas soccer balls. Which of the
Pie

Answer:

The correct answer is (A)

Explanation:

Nike and Adidas are considered as substitute goods that means they have positive cross elasticity of demand. When the price of Nike soccer balls fell, Rolando purchased more Nike balls compared to Adidas balls because of the substitution effect. The substitution effect led to this decision. A substitute effect is a change in the purchase decision, due to an increase in the price of one substitute good.

8 0
3 years ago
Which of the following questions must be asked about the use of resources
amid [387]

Answer:

B. What is the most effective allocation?

Explanation:

Economics is the social study of how society allocates its limited resources to meet the unlimited need of its members. It involves the distribution of scarce resources to various sections of the community to meet different wants. Economist's primary concern is the efficient use of the available resources to achieve maximum benefits.

Economics will involve making decisions on the use of available resources. Economists will calculate the opportunity cost in every situation before making a decision. The purpose of finding the opportunity costs to determine the most effective ways of allocating resources.

7 0
3 years ago
Calculate Producer Surplus if Reservation Price=20, Price=8, & Quantity=10.
Pavel [41]

C. 60  
Explanation: 
Producer's Surplus means the value producer derives from selling goods. For example, if producer is willing to sell the product for a price 8 but consumers are willing to pay a higher price, let's say 20, then producer achieves a surplus of 12 per unit. Let's calculate the producer's surplus -   
As per question, Reservation Price (RP) =20, Price (P) =8, & Quantity (Q) =10  
The formula for Producer Surplus (PS) is as follow: 
 PS = 1/2 (RP - P) x Q 
= 1/2 (20-8) x 10 = 60
4 0
3 years ago
a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects
lidiya [134]

If the publisher actually sells 1300 textbooks:

  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

  • A. the publisher will lose money on the sale of the textbooks.
  • B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
  • D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

#SPJ4

3 0
1 year ago
In an emergency situation, such as a life-threatening trauma in an emergency room, a supervisor must be:_______.
weqwewe [10]

Answer:

d. direct and assertive.

Explanation:

In an emergency situation, such as a life-threatening trauma in an emergency room, a supervisor must be direct and assertive.

When there's an emergency situation, this ultimately implies a life and death situation which is typically characterized by having someone being in a very critical and dangerous condition. In order to be able to save such an individual or situations, it is very important and essential to have a direct and assertive supervisor who is in charge or control of the emergency situation and capable of making quick decisions that would most likely salvage the situation.

A supervisor who is assertive is confident, bold and positive about his or her instructions in any situation, which is a prerequisite quality to overcome emergencies.

8 0
3 years ago
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