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vaieri [72.5K]
3 years ago
8

Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company als

o provides consulting services and support to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are not interdependent, the journal entry to record the transaction includesa. a credit to sales revenue for $250,000 and a credit to unearned service revenue of $100,000.
b. a credit to service revenue of $100,000.
c. a credit to unearned service revenue of $100,000.
d. a credit to sales revenue of $350,000.
Business
1 answer:
8090 [49]3 years ago
5 0

Answer:

The answer is: I believe the question was not copied correctly since the numbers don't match.

The recorded transactions should be:

  • Dr Cash 420,000
  • Cr Sales Revenue of 300,000
  • Cr Unearned Service Revenue of 120,000

Cash account should be debited, since it's an asset. Sales revenue should be credited since it increases equity.Unearned revenue is a type of liability, so it should be credited.

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Answer:

D. Both (B) and (C) are true

Explanation:

Cash payback approach is helpful to know the number of years, project would take to recover the initial investment. It could be calculated by dividing initial investment by cash flow per year. It is very simple and easy approach to compare projects and find number of years to recover the initial investment. The most serious weekness of cash payback approach is, it ignore the time value for the money, it also ignore project profitablity and project`s return on investment.  As according to cash payback approach, it consider projects with short payback time as profitable and thus ignore useful life of alternative projects.

7 0
3 years ago
Bank A offers to lend you money at 10 percent compounded monthly, Bank B at 11 percent compounded quarterly, and Bank C at 12 pe
ahrayia [7]

Answer and Explanation:

The computation is given below:

For Bank A,

Effective annual rate is

= (1 + 0.10 ÷ 12)^12 - 1

= 10.47%

For Bank B,

Effective annual rate is

= (1 + 0.11 ÷ 4)^4 - 1

= 11.46%

And,

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Effective annual rate = 12%

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8 0
3 years ago
Posting is the process of transferring items entered in a general journal to the: 1. worksheet. 2. trial balance. 3. general led
Rashid [163]

Answer:

The correct answer to the following question will be Option 3 (General ledger).

Explanation:

  • General Ledger is the full accounting of all the financial activities of the company across its lifespan. It contains all the documents which are preparing the reports of finance, including income, assets, investments, income, and expenditures.
  • It's an official paper that offers a comprehensive overview of the business transactions of the company.
  • An invoice, or general ledger key, is a number that is used to document business transactions in the ledger.

Therefore, Option 3 is the right answer.

7 0
3 years ago
In the last few decades, the female incarceration rate has grown ____%.
denpristay [2]
<span>The 646 percent growth in women in prison is significant compared to 419 growth in males that are incarcerated. Approximately 1 in 14 prisoners are female. The reasons range from petty crimes to capital murder. The lack of resources of single females may be leading to the drastic rise in percentage of women incarcerated.</span>
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3 years ago
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andreyandreev [35.5K]

Answer:

b. Production

Explanation:

Global Value Chains have been successful over the years due to most components being produced in the country where<em> it is cheaper to do so</em> and then the final output<em> is integrated in other country</em>.

Thus globalization of production has enabled <em>firms</em> to take advantage of national differences in the cost and quality of factors of production.

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