Answer:
A
cash 15,000 debit
accounts receivable 15,000 credit
B
cash 150 debit
gift card liaiblity 150 credit
C
accounts receivable 4,000 debit
services revenue 4,000 credit
D
cash 2,250 debit
unearned revenue 2,250 credit
E
accounts receivable 125 debit
service revenues 125 credit
Explanation:
A
we increase cash and decrease the customers accounts
B
we record the cash proceeds and use a liability for the obligation in the near future to provide services to a customer
C
we recognize the revenue and increase our accounts receivable
D
as the colleciton is in advance the revenue is not earned. this is a liability as we now have the obligation to perform services in the near future
E
we must match the revenue whn the time it occurs and that time was february not march.
Answer:
C.It is sometimes difficult for partners to agree on every business decision.
Explanation:
In partnerships, the company is owned by several people who held the status as 'Partners'. Everytime the company wants to make a decision, they need to ensure that the majority of these 'partners' agree on the decision. Often time, problem might occurs if the partners have different ideas on how the company should be operated.
In sole proprietorship, only one person held the position as the owner. This mean that the person has full authority in determining the type of decision that should be implemented for the business.
Answer: 1. Goodwill
2. a. Record no entry in the books
b. Record a loss in the books
Explanation:
1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.
Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).
2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this <u>gain</u> on the books.
b. If the value of the asset has decreased, Heartland should record a loss in the books to represent the loss on this account.
Answer:
The question would be, Do you have an adequate emergency fund?
Explanation:
When an individual or a company is evaluated on the basis of its current income and a plan is made for its future finances, to predict future income, assets, finances, etc, it is called as the Financial Planning.
The most important question to be asked while planning for finances is, Do you have an adequate amount of emergency funds? This is because it is always necessary to have some funds reserved for emergency purpose. Planning your finances without reserving amount for the emergency is useless. So it is most important to have an adequate amount of money or funds reserved for the emergency situations.
