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ZanzabumX [31]
3 years ago
12

Golddigger Services, Inc. provides services to clients. On May 1, a client prepaid Golddigger Services $60,000 for 6-months serv

ices in advance. Golddigger Services' general journal entry to record this transaction will include a:_________
A) Debit to Unearned Management Fees for $62,000.
B) Credit to Cash for $62,000.
C) Credit to Unearned Management Fees for $62,000.
D) Debit to Management Fees Earned for $62,000.
E) Credit to Management Fees Earned for $62,000.
Business
1 answer:
slavikrds [6]3 years ago
8 0

Answer:

C) Credit to Unearned Management Fees for $62,000.

Explanation:

* There is an Inconsistency with the amount of fee mentioned in Question and In options $60,000 and 62,000 respectively.

The Service fee is received in advance and the service is not been performed. You can record the revenue when you perform the service against the amount received. So, amount 62,000 will be the Unearned Management fee and it will be a liability and the Journal transaction for this event will be as follows:

Dr. Cash                                            $62,000

Cr. Unearned Management Fees   $62,000

So the correct option is C) Credit to Unearned Management Fees for $62,000.

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What caused the unintended consequence of "there's no such thing as shovel-ready projects?"
Misha Larkins [42]

Answer:

A)  Any of these causes could be a reasonable answer.

Explanation:

When the government needs to spend money on service projects or products, there are many roadblocks in the way.

1. The US House has the "power of the purse," because All Bills for raising Revenue shall originate in the House of Representatives (U.S. Constitution, Art. I, sect. 7)

2. Most State Governments have to approve contracts and vet private industries to complete public works projects.

3. Like all business structures,all of the factors of production need to be in place before work can begin.

4 0
4 years ago
John and Karl can live together in a two-bedroom apartment for $500 per month, or each can rent a single-bedroom apartment for $
tester [92]

Explanation:

A: Together their flat is $500, however if they were to live separately it'd be $350 per month. 350x2= 700. They save $200 by sharing a flat. However, if Karl plays John $175 a month to keep the dirty dishes away, then 200>175. Therefore, they should live together.

Karl could just live alone and pay the $350 to live alone with no dish problem.  Since Karl will play $175 to rid the dish problem the highest rent he'll pay is 350-175=175. John would pay 500-175=325<350 this shows it better for John to live with Karl.

B: If living alone, John would pay £ 350. The highest monthly rent he would be willing to pay for the shared apartment is: £ 350- £ 30 = £ 320. This means that Karl would need to pay at least: £ 500- £ 320 = £ 180. But the highest monthly rent Karl would be willing to pay is : £ 175. They should live separately.

hope this helps you out a bit, I know its a lot. But its math, what do we expect. lol

6 0
4 years ago
On January 1, 2020, Pharoah Company, a calendar-year company, issued $1680000 of notes payable, of which $420000 is due on Janua
irinina [24]

Answer:

Option C.

Current liabilities, $420,000;

Long-term Debt, $1,260,000.

Explanation:

The reason is that the amount that will be paid within the next 12 is current liabilities, so the amount $420,000 is current liability as it will be paid within the next 12 months. So the remainder of the amount that is not payable in the next 12 months is long term liability.

Long Term Liability = $1,680,000 Total Payable Amount - $420,000 Current Liability

Long Term Liability = $1,260,000

7 0
3 years ago
Define APV. How does it differ from NPV?Identify and discuss at least two other business valuation models that are popular.
Anna11 [10]

Answer:

Explanation:

Adjusted Present Value (APV) and Net Present Value (NPV) are  tools used in valuation of business operations or business projects. APV differs from NPV as the former uses cost of equity as the discount rate whereas the latter uses the WACC(weighted average cost of capital). Other business valuation methods are Payback period which is used to determine the number of years it takes for a project's future cashflows to fully recover the initial amount invested. Another example is Internal Rate of Return (IRR) which is the rate that determines how attractive a project; that which makes the NPV equal to zero.

4 0
4 years ago
At any given hotel, one of the largest departments is housekeeping.
KengaRu [80]

Answer:

True

Explanation:

3 0
2 years ago
Read 2 more answers
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