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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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Answer:

The correct answer is a. Special revenue.

Explanation:

A special revenue fund is an account established by a government to raise money that must be used for a specific project. Special income funds provide an extra level of responsibility and transparency to taxpayers that their taxes will be used for a specific purpose.

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The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
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Answer:

Net present Value (NPV)

Explanation:

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3 years ago
Studies indicate that the price elasticity of demand for beer is about 0.9. A government policy aimed at reducing beer consumpti
Aleonysh [2.5K]

Answer:

The government policy should have reduced beer consumption by 0.6 or 60%

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Mid point formula calculates the ratio of mid point of change in demand and change in price to their average value. Then these changes are used in the calculations of elasticity of demand.

According to given data:

Elasticity of demand = 0.9

Midpoint of price  = (20-10) / [(20+10)/2] = 10 / 15 = 0.6667

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Midpoint of price = 0.9 x 0.6667 = 0.6

Change in demand is should reduce the consumption by 0.6 or 60%.

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real interest rate ≈ nomial interest rate - inflation

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The goals of labor are such that they want better pay and working conditions.

<h3>The ultimate goal of workers/labor</h3>

A business is in operation to make a profit, likewise, labor or workers work to the end of being paid for the services rendered.

In addition to good pay, labor also requires good perks like health cover, safe and secure work conditions, and the environment.

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