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nirvana33 [79]
3 years ago
7

The Laramie Company operates a consulting practice. New clients are required to pay the firm in two transactions. First, clients

must pay $200 before receiving consulting services. Second, clients must pay $1,800 once the consulting firm finishes providing services to the client. How does The Laramie Company account for the second transaction?
a. Debit the Cash account for $200 and credit the Unearned Revenue account for $200.
b. Debit the Cash account for $2,000 and credit the Service Revenue account for $2,000.
c. Debit the Cash account for $200 and credit the Prepaid Service account for $200.
d. Debit the Cash account for $1,800, debit the Unearned Revenue account for $200, and credit the Service Revenue account for $2,000.
e. Debit the Cash account for $200, debit the Prepaid Service account for $1,800, and credit the Service Revenue account for $2,000.
Business
1 answer:
ch4aika [34]3 years ago
3 0

Answer:E

Explanation:Debit the cash account for $200, Debit the prepaid service account for $1,800 and credit the service Revenue account for $2,000

with the above breakdown, we have been able to account for the 2 payment tranches that comprises the sales/ revenue per client.

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James owns a vacant property. By law, he can build the following building types, which generate a return on investment as listed
Dima020 [189]

Answer:

Office building

Explanation:

The formula to compute the return on investment is shown below:

Return on investment = Operating Income ÷ Average Operating Assets

It is a mix of operating income and the average operating assets through the return on investment could be computed

Since the return on investment is already given in the question

And, the higher return on investment is the best one for property use

So the office building has a higher return on investment i.e 13.5% which reflects the best for property usage.

6 0
4 years ago
Sales of Schwinn's apartment-sized exercise machine have experienced a steady climb; however, the profits have been negative. Th
Alchen [17]

Answer:

<em>The Schwinn exercise machine is most likely in the</em> <u>introduction</u><em> stage of the product life cycle.</em>

Explanation:

The life cycle of a product is characterized by the phases:

1- introduction,

2- growth,

3- maturity

4- decline.

The first step is the introduction, which characterizes the product's insertion in the market, and includes business efforts to make consumers aware of the product. This phase has as its main characteristics the <u>low volume of production and sales.</u>

8 0
3 years ago
Karen Rogers is a salesperson for Solar Panels Inc. She attends builder trade shows to identify potential customers in an effort
tatiyna

Answer:  

Prospecting

Explanation:

Prospecting selling process -

It is the very first step in the process of sales , according to this step ,

The step involves the detecting the potential of the customers .

The focus of prospecting is to develop the database of the customers and to communicate with them in order to convert the potential customers to the current customers .

Hence from the question ,

Karen Rogers is involved in the prospecting selling process .  

7 0
4 years ago
ompany X and company Z are planning to merge their business into one and are seeking regulatory approval. What is the most likel
ArbitrLikvidat [17]

Answer: The newly created firms is able to take advantage of economies of scale.

Explanation:

A merger is an agreement whereby two companies come together and pool their resources together in order to form one company and achieve same organizational goals.

One main reason why companies merge together is in order to achieve economies of scale. This is the reduction in cost as a result of the expansion and increase in production level.

4 0
3 years ago
Same company as in RA 5.3: Stock price of $42, earnings of $2.12 per share during the last twelve months, forecasted earnings of
luda_lava [24]

Answer:

P/E ratio = $14.78

Explanation:

Market value per share = $42

earning per share = $ 2.84

As we know that:

           Price earning ratio = market value per share / earning per share

                                         =  $42 / 2.84

                                          = $14.78

      Price earning ratio is an indicator to investor whether to invest in this company long term or not.

6 0
4 years ago
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