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4 years ago

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31.

Business

1 answer:

Anastaziya [24]4 years ago

5 0

Answer:

Step 1) The current balance equals to $ 9000

Step 2)The current balance should equal to (9000/12 * 10) $ 7500

Step 3) the adjusting entry would be

Dec 31 Unearned Revenue $ 1500 (dr)

Revenue Earned $ 1500 (Cr)

Step 1) The current balance equals to $ 400.

Step 2) The current balance should equal $ 100

Step 3) The adjusting entry would be

Dec 31 Unearned Services Revenue $ 300 (dr)

Services Revenue Earned $ 300 (Cr)

Step 1) The current balance equals to $ 3000.

Step 2) The current balance should equal ( $ 30,000/12 *4= $ 10,000) $ 30,000- $ 10,000= $ 20,000

Step 3) The adjusting entry would be

Dec 31 Unearned Rent Revenue $ 10,000 (Dr)

Rent Revenue Earned $ 10,000 (Cr)

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Hawk Corporation purchased 10,000 Diamond Corporation bonds in 2015 for $61 per bond and classified the investment as securities

Pavel [41]

Answer:

Explanation:

In this question ,we take the difference of the per bond value based on the year. The computation is shown below:

During 2015 to During 2017:

= Number of bonds purchased × (December 31, 2017 value - 2015 value)

= 10,000 × ($92 - $61)

= 10,000 × $31

= $310,000

During 2018:

= Number of bonds purchased × (December 31, 2018 value - 2017 value)

= 10,000 × ($146- $92)

= 10,000 × $54

= $540,000

So, the total amount would be

= $310,000 + $540,000

= $850,000

This amount which reflect in the income statement as a realized gain

6 0

3 years ago

On November 1, Bahama National Bank lends $3.7 million and accepts a six-month, 9% note receivable. Interest is due at maturity.

Charra [1.4K]

Answer:

11/01

Dr Cash $3.7 million

Cr Notes Payable $3.7 million

12/31

Dr Interest expense $55,500

Cr Interest payable $55,500

Explanation:

Preparation of the journal entries to Record the issuance of the note and the appropriate adjustment for interest expense at December 31, the end of the reporting period.

11/01

Dr Cash $3.7 million

Cr Notes Payable $3.7 million

(To record issuance of the note)

12/31

Dr Interest expense $55,500

Cr Interest payable $55,500

(To record adjustment for interest expense)

Interest Expense = Face Amount x Interest Rate x Time Period

Interest Expense= $3.7 million x .09x 2/12 Interest Expense=$55,500

6 0

3 years ago

Eleanora offers Flossy the amount of an investment in Flossy’s start-up business venture if she marries Eleanora’s son Glenn. Th

boyakko [2]

Answer:

this promise is enforceable only if it is agreed upon in writing

Explanation:

In the scenario described in the question it can be said that this promise is enforceable only if it is agreed upon in writing. This is because by putting it in writing all details of the contract are displayed for both parties to read/analyze and decide whether they actually want to agree to this agreement/contract or not. Once the contract is signed and agreed upon by both parties it can then be completely enforced because both parties knew exactly what they were getting into at the time of signing.

5 0

3 years ago

Phillip was waiting for a bus at a bus stop. Across the street and down the block, a mechanic negligently overinflated a tire he

lozanna [386]

Answer: He is more likely to lose the case.

Explanation:

Philip is likely to lose because eventhoug the mechanic's action or conduct was an act of negligence toward Marsha, it was not a proximate causation in relation to Phillip, who was far away.

Proximate causation means it was not the primary cause of his injury , the mechanic could have not predicted or foreseen that Philip was going to be injured buy a running dog and that frees him from a duty to Philip.

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3 years ago

Joshua is retired. He lives on a fixed pension. His daughter Sue just bought a house. She has fixed rate of interest on her mort

Radda [10]

<h2>Joshua would lose and Sue would benefit from unanticipated inflation.</h2>

Explanation:

Both Joshua and Sue are associated with fixed pension and fixed interest respectively.
Now the value of money goes down due to inflation
So to live as usual, Joshua need to spend some extra money. But considering the fixed income, it's a lose to Joshua
Whereas Sue is associated with fixed interest of mortgage. She is benefited because, though the inflation has changed the value of all other products, but the fixed interest rate does not change.
"Fixed-rate mortgage holders are inflation winners", says "Thoma, professor of economics at the University of Oregon"

6 0

4 years ago