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steposvetlana [31]
3 years ago
7

State University sold all of its basketball tickets to its students for 15 home games on September 30 for​ $1,200,000 (basketbal

l season starts November​ 1). Assuming the college basketball team played six home games prior to​ year-end, what adjusting journal entry​ (if any) is necessary on December​ 31, assuming the initial student ticket transactions were recorded on September​ 30?
Business
1 answer:
UNO [17]3 years ago
5 0

Answer:

Debit Deferred revenue      $480,000

Credit Revenue                    $480,000

Being entries to recognize cash received for revenue earned during the year.

Explanation:

The cash received from the students on 30 September will be accounted for in the cash account however, the corresponding entry is a liability known as deferred or unearned revenue.

As such the entries on that day will be

Debit Cash account      $1,200,000

Credit Deferred revenue  $1,200,000

Being entries to recognize cash received for revenue yet to be earned.

Since a total of 15 games were paid for and only 6 were played as at year end, amount earned

= (6/15) × $1,200,000

= $480,000

Hence adjusting entries required will be

Debit Deferred revenue      $480,000

Credit Revenue                    $480,000

Being entries to recognize cash received for revenue earned during the year.

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Which of the following would probably not make an appropriate call to action?
Ostrovityanka [42]

Answer: The answer is C.

6 0
2 years ago
For most people, the purchase of a Ford automobile would employ which type of consumer decision making?
Nostrana [21]

Answer:

Extended decision making

Explanation:

Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.

So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.

5 0
3 years ago
Which financial statements are required for proprietary funds?a) Statement of Net Position; Statement of Revenues, Expenses, and
Cerrena [4.2K]

Answer:

c) Statement of Net Position; Statement of revenues, expenditures, and changes in fund balances; Statement of Cash Flows

Explanation:

Proprietry funds are accounts that are part of governmental institutions and non profits organizations and these require a high standard of transparency and accountability, so they are require to provide to the government the next statements: tatement of net assets; a statement of revenues, expenses, and changes in fund net assets; and a statement of cash flows.

This is accordingly to the summary of statements N. 34 from the Governmental Accounting Standards Board.

3 0
3 years ago
James Corporation is planning to issue bonds with a face value of $502,500 and a coupon rate of 6 percent. The bonds mature in 7
sweet-ann [11.9K]

Answer:

a.

Bond Price  = $563,333.90007 rounded off to $563,333.90

b.

Bond Price  = $502500

c.

Bond Price  = $437232.16025 rounded off to $437232.16

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is a semi annual bond, we will use the semi annual coupon payment, semi annual number of periods and semi annual YTM. The formula to calculate the price of the bonds today is attached.

a. Case A: Market interest rate (annual): 4 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 4% * 6/12  =  0.02 or 2%    

 

Bond Price = 15075 * [( 1 - (1+0.02)^-14) / 0.02]  + 502500 / (1+0.02)^14

Bond Price  = $563,333.90007 rounded off to $563,333.90

 

b. Case B: Market interest rate (annual): 6 percent

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 6% * 6/12  =  0.03 or 3%    

 

Bond Price = 15075 * [( 1 - (1+0.03)^-14) / 0.03]  + 502500 / (1+0.03)^14

Bond Price  = $502500

c. Case C: Market interest rate (annual): 8.5 percent.

Coupon Payment (C) = 502500 * 0.06 * 6/12 = $15075

Total periods remaining (n) = 7 * 2 = 14

r or YTM = 8.5% * 6/12  =  0.0425 or 4.25%    

 

Bond Price = 15075 * [( 1 - (1+0.0425)^-14) / 0.0425] + 502500/(1+0.0425)^14

Bond Price  = $437232.16025 rounded off to $437232.16

7 0
3 years ago
The standard cost of product 777 includes 2.9 units of direct materials at $6.8 per unit. During August, the company bought 29,2
Olegator [25]

Answer:

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

Explanation:

Total Material Variance = Standard Cost - Actual Cost

Standard Cost = Standard units \times Standard Price

Standard Units = 10,300 \times 2.9 = 29,870 units

Standard cost =  29,870 \times $6.8 = $203,116

Actual Cost = 29,200 \times $6.90 = $201,480

Total Material Variance = $203,116 - $201,480 = $1,636 Favorable

Material Price Variance = (Standard Rate - Actual Rate) \times Actual Units

= ($6.8 - $6.9) \times 29,200 = - $2,920 Unfavorable

Material Quantity Variance = ( Standard Units - Actual Units) \times Standard Price

= (29,870 - 29,200) \times $6.8

= $4,556 Favorable

Final Answer

Total Material Variance = $1,636 Favorable

Material Price Variance = $2,920 Unfavorable

Material Quantity Variance = $4,556 Favorable

8 0
3 years ago
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