Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year inc
lude:Wages paid to maintenance workers$60,000Fabric used to upholster furniture$8,000Wages paid to assembly-line workers$100,000Lumber used to build product$15,000Sales commissions$7,500Insurance costs for factory$21,000Freight-in (on raw materials)$3,000Utilities in factory$12,000Factory supervisor salary$60,000Depreciation on factory equipment$18,000Utilities in sales office$26,500Costs of delivery to customers$8,000Depreciation on sales office$1,000Lubricants used in factory equipment$500Prime costs for Rustic Living Furniture Company totaledA) $126,000.B) $23,000.C) $123,000.D) $168,500.
The entry that Yacht Doc should make on October 25 is a $200,000 credit to Unearned revenue and a $200,000 debit to Cash.
<h3>What is unearned revenue?</h3>
This is an account that includes amounts that a company has received goods it hasn't sold or services it hasn't given out yet.
Yacht Doc had not yet delivered the yacht nor provided any services and yet they were paid. This will therefore go to the unearned revenue account as a credit because this is a liability account.
Investors buy stocks for various reasons. Here are some of them: Capital appreciation, which occurs when a stock rises in price. Dividend payments, which come when the company distributes some of its earnings to stockholders.