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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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Answer: unpaid principal balance.

Explanation: unpaid principal balance is that portion of a loan that has not yet been paid back to the lender by the borrower. The balance represents the remaining risk of nonpayment being incurred by the lender. Unpaid principal balance is the portion of a loan at a certain point in time that has not yet been remitted to the lender. The original unpaid principal balance is the amount borrowed, and therefore, the amount the borrower owes the lender on the origination date of the loan.

4 0
3 years ago
ABC had the following net income (loss) the first three years of operation: $7,100, ($1,600), and $3,600. If the Retained Earnin
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Answer:

The total amount of dividends paid over these three years: $8000

Explanation:

  • Net income (loss) in three years

$7,100, ($1,600), and $3,600  

=> the total net income is the first three years of operation is:

$7,100 -  ($1,600) +  $3,600  

= $9,100

This money is not kept in the Retained Earnings because it is used for dividend payment. But Earnings balance at the end of year three is $1,100, so the total amount of dividends paid over these three years:

= Total net incomes - Retained Earnings

= $9,100 - $1,100,  

= $8000

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3 0
3 years ago
Read 2 more answers
Sigmund wrote four checks last month, and these were the only transactions for his checking account . Accourding to his register
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The answer is $177.48
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3 years ago
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Equipment purchased at the beginning of the fiscal year for $150,000 is expected to have a useful life of 5 years, or 15,000 ope
CaHeK987 [17]

Answer:

(a). Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

(b). 1st Year Depreciation = $20,000

for 2nd year depreciation = $26,000

(c) 1st year Depreciation= $60,000

2nd year Depreciation = $36,000

Explanation:

a).

Annual Depreciation of Equipment = (Cost of Equipment - Residual Value) ÷ Useful Life of Equipment

= ($150,000 - $30,000) ÷ 5

= $24,000

Rate of Straight Line Depreciation = Annual Depreciation of Equipment ÷ (Cost of Equipment - Residual Value) × 100

= 24,000 ÷ ( $150,000 - 30,000) × 100

= $24,000 ÷ $120,000 × 100 = 20%

Depreciation for 1st year= $24,000

Depreciation for 2nd year= $24,000

b). Unit Of Production For 1st Year Depreciation= (Cost Of Equipment -Residual Value) × Annual Production Units ÷ Total Operating Hours

= ($150,000 - $30,000) × 2,500 ÷ 15,000 = $20,000

Unit of Production for 2nd year depreciation = ( $150,000 - $30,000) × 32,50 ÷ 15,000

= $26,000

c). Declining Balance Depreciation Rate = Straight Line Depreciation Rate × 2

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1st year Depreciation= $150,000 × 40÷100 = $60,000

2nd year Depreciation = ($150,000 - $60,000) × 40÷100 =$36,000

8 0
3 years ago
If the law of increasing opportunity costs is operable, and currently the opportunity cost of producing the 101st unit of good X
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Answer:

C) more than 5Y

Explanation:

the opportunity cost of producing 101 units of X = 5 units of Y

if the opportunity costs increase as the number of units produced increases, then the opportunity cost of producing 201 units of X will be more than 5 unit of Y. This is simply because 5 units of Y was the opportunity cost of producing 101 units of X and the opportunity costs are increased.

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3 years ago
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