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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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De Von is graduating from college and wants to create a professional development plan in order to prepare for his future. What i
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The answer is B. “What are my current skills ?”

hope this helps !
3 0
3 years ago
Scenario 22-3: Economy of Centralia Centralia has no trade and no government. GDP = $25 trillion. Consumption Spending = $18 tri
erastovalidia [21]

Answer:

The level of private saving in Centralia is $7 trillion.

Explanation:

The economy of Centralia has no trade and no government.

The level of GDP is given as $25 trillion.  

Consumer spending is $18 trillion.  

The level of private savings, in this case, will be the difference between the GDP or total income and consumption spending.  

Private savings  

= $25 trillion - $18 trillion

= $7 trillion

8 0
3 years ago
A company is considering investing in a new machine that requires a cash payment of $47907 today. The machine will generate annu
swat32

Answer:

12%

Explanation:

Calculation for the internal rate of return if the company buys this machine

Using this formula

IRR = Initial investment/Annual Cash flow

Where,

Initial investment =$47,907

Annual Cash flow =$19,946

Let plug in the formula

IRR= $47,907/$19,946

=2.402

Using PV factor table = 2.402

IRR = 12%

Therefore internal rate of return if the company buys this machine will be 12%

8 0
4 years ago
Elis, Phoebe, and Jason work at United Insurance, a medium-sized insurance company with 240 branches in 8 states. Elis works as
NeTakaya

Answer:

<em>Role conflict</em>

Explanation:

Role conflict arises <em>whenever there are inconsistencies in their daily lives or  workplace between different roles or jobs that a person assumes or performs. </em>

In certain instances, the conflict is the outcome of opposing responsibilities,  resulting in a conflict of interest, in others, when an individual has roles that have  different status, and it also arises when people are unhappy about what the duties should  be for a specific role, be it in the personal or business regions.

3 0
3 years ago
Which of the following accurately describes the difference between a change in supply and a change in quantity supplied? a. ​ A
Sedaia [141]

Answer:

Option A

Explanation:

First let's make see the what is the difference (they are not the same thing.) And then lets analize which statement is the most accurate.

A change in supply and a change in quantity supplied are different things.   The change in supply is caused by changes in costs and incentives that change how much a producer can and will produce at a given price.

The change in quantiy supplied is caused simply by a change in the retail price of the product.

The change in <em>quantity supplied is shown as a movement along the curve</em>. While the change in <em>supply is shown graphically as a movement of the supply curve.</em>  

As we can see, that means that A is the correct answer.

5 0
3 years ago
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