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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 describes the most typical order of entry into foreign markets?
Veronika [31]

Answer:

None of above is the answer. The correct order is: B.exporting, licensing, franchising, joint venture, and wholly owned subsidiary.

Explanation:

Once the company has selected the market or markets to which it will direct its international expansion strategy, it will move on to the phase of choosing the entry form. The decision will depend on the type of product or service to be exported, the financial commitment that the company is willing to assume, as well as the level of control and coordination of international operations.

“The different input methods are determined according to the nature of the control that can be exercised over the distribution channel, over the products and brands that are marketed in the destination country”

3 0
3 years ago
The market capitalization rate on the stock of Aberdeen Wholesale Company is 10%. Its expected ROE is 12%, and its expected EPS
Shalnov [3]

The Price-earnings ratio of Aberdeen Wholesale Company equals to 14.29.

<h3>What is a P/E ratio?</h3>

Its means the Price-earnings ratio which is used to value a companies by comparing the company's share price to its earnings per share.

<u>Given data</u>

Market capitalization rate = 10%

Expected ROE = 12%

Expected EPS = $5

Plowback ratio is 60%

<h3>What is the Dividend payout ratio?</h3>

= 1 - 0.6

= 0.4

<h3>What is the Expected dividend?</h3>

= 0.4 × $5

= $2

<h3>What is the Growth rate?</h3>

= 0.6 * 12%

= 7.2%

<h3>What is the Firm Value?</h3>

= $2 / (0.10 - 0.072)

= $2 / 0.028

= $71.43

<h3>What is the P/E ratio?</h3>

= $71.43 / $5

= 14.286

= 14.29

Hence, the Price-earnings ratio of Aberdeen Wholesale Company equals to 12.5.

Therefore, the Option D is correct.

Read more about Price earnings ratio

<em>brainly.com/question/14690388</em>

5 0
2 years ago
Mountain Mining requires $3.3 million to expand its current operations and has decided to raise these funds through a rights off
DedPeter [7]

Answer:

183,333.33 shares

Explanation:

The computation of the shares of stock need to be sold is shown below:

= Total amount required to expand its current operations ÷ subscription price

= $3,300,000 ÷ $18 per share

= 183,333.33 shares

This is the answer and the same is not provided in the given options

We simply divide the Total amount required to expand its current operations by the subscription price so that the accurate shares can come.

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
For some years now, you’ve owned a small specialty bookshop in a college town. You sell some textbooks but mainly cater to a bro
frutty [35]

There is a hope and there is a business strategy that might yet save the store " book selling strategy relied upon investing in, and trusting, in staff "  

Explanation:

Here is the example story of British indie bookstore owner:

In 2018 the days of the last big retail store in the United States seems to have been numbered. A decade of sales losses, traumatic lay-offs, 150 store closures, six CFOs and a 1 billion-dollar loss on its e-reader from Nook has left the company in the midst of an identity crisis.

In the recent decade, Daunt has emerged as an unexpected salvator for bookstores for large-scale businesses and is now accountable at Barnes&Noble for the rebirth of Waterston, the British retailer of about 300 branches. In a world where Amazon offer unspeakable convenience and costs, large book retailers can prosper only if they behave more like independents. His plan for recovery is based on a simple assumption.

Investment and confidence is the foundation of Daunt's bookselling strategy. "The secret to successful employers is retaining them long-term, building up careers, training them businesses."

The staff at Daunt Books know what makes customers feel like they're in a readers ' culture. They follow those principles: never prescribe more than three books at a time, so that the consumer is not frustrated. Do not just hand out your own preferences when anyone asks for a recommendation. First of all, say, "What was the last good book that you read?"It is more likely to appreciate somebody who enjoys Tana's French mysteries than the next Thomas Pynchon.

7 0
3 years ago
In 2018, DFS Medical Supply collected rent revenue for 2019 tenant occupancy. For income tax reporting, the rent is taxed when c
Fofino [41]

Answer:

Since Tax Payable is $940000 @ 40%, Taxable income will be:

= $940,000 × (1/40%)

= $2,350,000

Only Temporary difference is Rent $490,000, which is being recognized for tax but not for Books.

Hence Pre-Tax Accounting income will be:

= $2,350,000 - $490,000

= $ 1,860,000

Therefore, Journal Entry will be:

Income Tax Expense A/c (1,860,000 × 40%)  Dr. $744,000

Deferred Tax Asset A/c  (490,000 × 40%)      Dr. $196,000

To Income Tax Payable                                                             $940,000

(To record income taxes for 2018)

6 0
2 years ago
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