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xenn [34]
3 years ago
11

Gomez Company collected $19,200 on September 1, Year 1 from a customer for services to be provided over a one-year period beginn

ing on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1?
Business
1 answer:
Ksenya-84 [330]3 years ago
5 0

Answer:

$6,400

Explanation:

On December 31, year 1, 4 months has been passed so, the revenue of 4 months should be recognized at this date. The payment was recorded as unearned revenue on September 1 using following entry.

September 1,

Dr. Cash                            $19,200

Cr. Unearned Revenue    $19,200

The revenue account will be credited by the 4 months revenue amount and unearned revenue account will be debited to reduce the amount by the four month accrual.

Total Unearned revenue = $19,200

Revenue for four months = $19,200 x 4/12 = $6,400

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1 year ago
Each of the following is an example of a significant noncash activity except Group of answer choices conversion of bonds into co
Maurinko [17]

Answer: stock dividends

Explanation:

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The activities involved here include, stockholders equity etc. and they are typically found at bottom of cash flow statement.

Based on the options given, the example of a significant noncash activity will include conversion of bonds into common stock, exchanges of plant assets and the issuance of debt to purchase assets.

Therefore, the correct option will be stock dividends.

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3 years ago
Fern motors is offering a rebate on cars purchased this month. this activity involves the ____ ingredient of the marketing mix.
saveliy_v [14]

Answer:

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Explanation:

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Pricing-  is for determining the value that is put on a product including rebates. Deciding the correct intrinsic value of a product puts a lot of factors into consideration like the target market, the consumer willingness to pay, whether it is sufficient enough for the company to make a profit out of it.

Product - answers the <em>what</em>; the actually good or service being offered for sale.

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The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value

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solong [7]

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