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lana [24]
2 years ago
13

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an

d $50 increments. Assume Apple sells $19.3 million in iTunes gift cards in November, and customers redeem $12.3 million of the gift cards in December. and customers redeem $12.7 million of the gift cards.
Record the necessary entries in the Journal Entry Worksheet below.

Record the receipt of cash for gift cards.

Record the revenue earned from redemption of gift cards.

What is the ending balance in the unearned revenue account?
Business
1 answer:
Anastasy [175]2 years ago
6 0

Answer:

cash                       19,300,000 debit

      unearned revenues                 19,300,000 credit

unearned revenues      12,700,000 credit

     sales revenues                    12,700,000 credit

balance:

19,300,000 - 12,700,000 = 6,600,000 balance

Explanation:

the gift card will be considered a liaiblity as it generates an obligation to Apple to latter provide their services/goods.

Once the gift card are redeem the company is able to recognize revenue as it has provided the goods to the customers.

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Scott Company has 5 sales employees, each of whom earns $16,000 per month and is paid on the last working day of the month. Each
pogonyaev

Answer:

Scott Company

Journal Entries:

January 31:

Debit Payroll $80,000

Credit Salaries Payable $57,200

Credit Payroll Taxes Payable $22,800

To record the salaries and taxes payable.

Debit Salaries Payable $57,200

Debit Payroll Taxes Payable $22,800

Credit Cash $80,000

To record the payment of the salaries and taxes.

Explanation:

a) Data and Calculations:

Number of sales employees = 5

Salary per month = $16,000 each

Withholding taxes:

FICA social security taxes of 6.2% = $992

Medicare taxes  1.45% = $232

Federal income tax = 16% = $2,560

Monthly Medical Insurance = $440

FUTA = 0.8% of the first $7,000 = $56

SUTA = 4.0% of the first $7,000 = $280

Total withholding tax deductions = $4,560

Payroll total ($16,000 * 5) = $80,000

Withholding taxes for each:

FICA social security taxes of 6.2% = $992 * 5 - $4,960

Medicare taxes  1.45% = $232 * 5 - $1,160

Federal income tax = 16% = $2,560 * 5 - $12,800

Monthly Medical Insurance = $440 * 5 - $2,200

FUTA = 0.8% of the first $7,000 = $56 * 5 - $280

SUTA = 4.0% of the first $7,000 = $280 * 5 - $1,400

Total withholding tax deductions = $4,560 * 5 = $22,800

Net pay = $57,200

5 0
3 years ago
Select the correct answer
Luda [366]

Answer:

option. C. $50

Explanation:

Your loss is limited to $50 if you notify your financial institution within two business days after learning of the theft.

7 0
2 years ago
The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts
vekshin1

Answer:

                             Guardian Health Services Co.

           Income Statement for the year ended February 28, 20Y0

                                                                        $                        $

Sales

      Service Revenue                                                          334,100

Cost of Goods sold

      Supplies Expense                                                         <u>    4,180</u>

Gross Profit                                                                          329,920

Operating expense

      Utilities Expense                                   26,800

      Wages Expense                                  262,700

      Depreciation Expense                            17,400

      Insurance Expense                                  8,530

      Miscellaneous Expense                           6,790

      Rent Expense                                         70,300

                                                                                         <u>   392,520</u>

Net profit/(loss)                                                                    (62,600)

Explanation:

The income statement is a statement that shows the net profit or loss of a business for a period end. It shows the income made and expenses incurred in the course of a given period.

7 0
2 years ago
The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot...........................
Gnoma [55]

Answer:

The Wall Street Journal Reports

a. The Swiss franc was selling at a premium in the forward market.

b. The 30-day forward premium was: $0.0049.

c. The 90-day forward premium was: $0.0099.

d. Dollars to receive from a 90-day forward contract is $95,310.

Explanation:

a) Data and Calculations:

Spot and forward rates for the Swiss franc ($/SF):

Spot............................................ $0.9432

30-day forward.......................... $0.9481

90-day forward.......................... $0.9531

180-day forward........................ $0.9594

Premium:

30-day forward.......................... $0.9481

Spot............................................   $0.9432

Premium =                             $0.0049

90-day forward.......................... $0.9531

Spot............................................   $0.9432

Premium =                             $0.0099

180-day forward........................ $0.9594

Spot............................................    $0.9432

Premium =                               $0.0162

Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)

6 0
3 years ago
The primary difference between a change in supply and a change in the quantity supplied is: Select an answer and submit. For key
kipiarov [429]

Answer:

D

Explanation:

A change in quantity supplied is as a result of a change in the price of the good. This change in the price leads to a movement along the supply curve. If price increases, there is an upward movement up along the supply curve and if there is a decrease in price, there is a movement down the demand curve.

A change in supply is caused by other factors other than price. Some of these factors include :

  • A change in the number of suppliers
  • The cost in the price of raw materials needed in the production of the good.

A change in supply leads to a movement outward or inward

3 0
2 years ago
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