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pogonyaev
3 years ago
11

Aggie Fitness began business in College Station, TX on June 1, 2018. At that time, the company collected $6,000 in advance payme

nts from customers for 12-month gym memberships. At December 31, 2018, after the adjusting entries are recorded and posted, the balances in Unearned Revenue and Membership Revenue should be, respectively,a. $3,000, $3,000b. $2,500, $3,500c. $6,000, $0d. $0, $6,000e. $3,500, $2,500
Business
1 answer:
REY [17]3 years ago
3 0

Answer:

b. $2,500, $3,500

Explanation:

Amount collected in advance will be recognized as a liability until the revenue is earned. Entries are posted between the cash account and deferred revenue account on collection of cash.

Given that he company collected $6,000 in advance payments from customers for 12-month gym memberships on June 1, 2018.

Debit Cash account $6,000

Credit Unearned revenue $6,000

After 7 months ( between 1 June and 31 December 2018),

Revenue earned = 7/12 × $6,000 = $3,500

On December 31, 2018,

Debit Unearned revenue          $3,500

Credit Membership  Revenue   $3,500

Balance in unearned revenue accounts = $6,000 - $3,500 = $2,500

Balance in Membership revenue = $3,500

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When an accounts payable ledger is used, the Accounts Payable account in the general ledger becomes a(n) control account.

Explanation:

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2 years ago
Explain how and why each of the following factors would influence current aggregate demand in the United States: a. increased fe
sukhopar [10]

The effects of the given factors on current U.S. aggregate demand would be:

  • a. Lower current aggregate demand (AD).
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  • c. Higher current AD.
  • d. Higher current AD.
  • e. Lower current AD.

<h3>What affects Aggregate Demand?</h3>

When there is an increased fear of recession, aggregate demand drops as people want to save money for the recession. A higher price level will make things more expensive so AD drops as well.

When there is a fear of inflation, people increase spending so they can buy goods before prices increase.

Real income growth in other countries will lead to higher exports which will increase national wealth and therefore allow consumers to purchase more goods.

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2 years ago
Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company tha
lora16 [44]

Answer:

Amoun of sales Revenue for the first quarter of 2019

Jan                              $120,000

Feb ( 120,000*1.05)       126,000

March ( 126,000* 1.05)    <u>132,300</u>

                                         <u>378,300 </u>

<u> Cash Receipt schedule for the first quarter of 2019</u>

                                             Jan               Feb               March

Jan sales                            $84,000       24,000          12,000

Feb sales                                 -                88,200         25,200

March sales                         <u>    -      </u>           <u>   -          </u>        <u>92,610</u>

                                           <u>84,000</u>           <u> 112,200</u>        <u>129,810</u>

<u />

<u>Amount of Account Receivable as of MArch 2019</u>

Feb sale   10%* 126,000                                 $12,600

March sales( 20%* 132,300) + (10%*132300)   <u>39,690</u>

                                                                          <u>  52,210</u>

Explanation:

cash receipt

Jan Sales :   Jan     70% * 120,000 = 84,000

                    feb      20%* 120,000   = 24,000

                  March    10% * 120,000  = 12,000

Feb sales  :   Feb   70%*126,000 =  88,200

                      March 20% * 126,000 = 25,200

                      April   10%* 126,000 =     12,600

March sales :    March   70%* 132300 = 92,610

                         April      20%*132300 =  26,460

                        May         10%*132300 =   13,230

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Answer:

3. Correctly ignored a sunk cost

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In the given case, the ticket for opera was already purchased for $100 which can now neither be recovered nor transferred. Thus this cost is irrelevant for decision making as expenditure has already been made. When Shen decided to go for a party instead of the concert, Shen has correctly ignored a sunk cost.

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Answer:

401k

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investment plan allow you to invest the most amount of money? ... A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed.

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3 years ago
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