1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ANTONII [103]
3 years ago
13

Sarjit Systems sold software to a customer for $176,000. As part of the contract, Sarjit promises to provide "free" technical su

pport over the next six months. Sarjit sells the same software without technical support for $153,000 and a stand-alone six-month technical support contract for $27,000, so these products would sell for $180,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
My name is Ann [436]3 years ago
7 0

Answer:

DR Cash ..............................................................$ 176,000

CR Sales Revenue................................................................$149,600

CR Deferred Revenue..........................................................$26,400

Explanation:

Revenue should only be recorded when earned and as the 6 month technical support can be sold separately, it is revenue that has not be earned yet as the 6 months have not elapsed. This will therefore need to be recorded as Deferred revenue.

Sold alone, the revenue is more than when they are sold together so use the standalone price to find out the revenue when sold together by proportionality.

Sales revenue = 153,000/180,000 * 176,000

= $149,600

Deferred Revenue = 27,000/180,000 * 176,000

= $26,400

You might be interested in
Three entrepreneurs were looking to start a new brewpub near sacramento, california, called roseville brewing company (rbc). bre
svet-max [94.6K]

Answer:

A lot of information is missing as well as the requirements, so I looked for similar questions.

The requirements are:

<em>a. What is the break-even point in sales dollars for RBC? </em>

<em>b. What is the margin of safety for RBC? </em>

<em>c. What sales dollars would be required to achieve an operating profit of $250.000? $490.000?</em>

<em />

a) break even point = total fixed costs / contribution margin

  • total fixed costs = $1,125,430
  • contribution margin = $1,427,642 / $1,953,000 = 73%

break even point = $1,124,430 / 73% = $1,540,315

b) margin of safety = current sales - break even point = $1,953,000 - $1,540,315 = $412,685

c) operating profit = $250,000 ⇒ ($1,125,430 + $250,000) / 73% = $1,884,150.69

operating profit = $490,000 ⇒ ($1,125,430 + $490,000) / 73% = $2,212,917.81

7 0
3 years ago
What is the present value of the following cash flows at a discount rate of 9 percent?
frutty [35]

Answer:

Year 1 PV = 91,743.12

Year 2 PV =126,251.99

Year 3 PV =  154,436.70  

Explanation:

<em>The present value of future sum is the amount that ought to be invested today at interest rate compounded annually to equal the sum at the end of a particular period.</em>

The present value of a future sum is given as follows:

PV = FV × PV (1+r)^(-n)

PV - present value

FV - Future value

r- interest rate

n- number of years

Year 1 PV = 100,000× 1.09^(-1) =91,743.12

Year 2 PV = 150,000× 1.09^(-2) =126,251.99

Year 3 PV = 200,000× 1.09^(-3) =  154,436.70  

4 0
3 years ago
Which of the following describes the means by which a message is sent. A. managing B. message C. media D. language
MariettaO [177]

Answer:

C. MEDIA

Explanation:

PLEASE MARK ME BRAINLIEST

5 0
2 years ago
A few years ago, Toyota found that consumers wanted cars to last longer and be more environmentally friendly. GM, however, enjoy
Allushta [10]

Answer:

General Motors had more of a Production Orientation

Explanation:

The company which is production oriented focuses on the production and company's production processes and runs campaigns to sell the product produced or the product they are producing. General motors produced the products which it is good in producing the products and won the market against great giants like Ford, Toyota and German auto companies. Whereas Toyota was developing market which is newly born and started pricing their products on the basis of products that were desired (environmentally friendly products) and lost the market because of lost of market share as this market was in introduction phase and Toyota left a market which was at maturity. Then it is obvious that Toyota has revenue losses due to leaving its concentration and marketing of products to mature market and was busy in developing environmentally free products market in US.

7 0
3 years ago
Management of a close corporation often resembles that of a______, but a corporation must meet the statutory requirements to rem
Reika [66]

Answer:

Explanation:

The statement in the question is not complete and should be the following with each of the answers provided being part of the statement like so,

Management of a close corporation often resembles that of a Partnership , but a corporation must meet the statutory requirements to remain a corporation. Often, shareholders in a close corporation restrict the transferability of shares. If a majority shareholder misappropriates company funds, the normal remedy for the other shareholders is to have their shares appraised to determine value and then receive that value.

8 0
3 years ago
Other questions:
  • When configuring a group of radio button form controls, the value of the ________ attribute on each radio button must be the sam
    6·1 answer
  • Explain what a data dictionary is, making sure to include definitions of the terms data element and record in your explanation.
    5·1 answer
  • What is the essential concept in understanding compound interest?
    15·1 answer
  • The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $115
    12·1 answer
  • Jennifer is trying to decide between a cup of coffee and a glass of orange juice. The coffee costs $1 and yields 10 units of add
    14·1 answer
  • Suppose you were hired as a consultant for a company that wants to penetrate the Comp-XM market. This company wants to pursue a
    9·1 answer
  • The 15 homes in a new development are each to be sold for one of three different prices so that the developer receives an averag
    10·1 answer
  • Which options are SmartArt categories? Check all that apply.
    8·1 answer
  • State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl
    5·1 answer
  • Do you agree that Project Integration knowledge domain is the most important domain for project managers
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!