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kolezko [41]
3 years ago
9

n May 1, 2009 Giltus Advertising Company received $1,500 from Julie Bee for advertising services to be completed April 30, 2010.

The Cash receipt was recorded as unearned fees and at December 31, 2009, $1,000 of the fees had been earned. The adjusting entry on December 31 Year 1 should include:Select one:a. A debit to Unearned Fees for $500.b. A credit to Unearned Fees for $500.c. A credit to Earned Fees for $1,000.d. A debit to Earned Fees for $1,000.e. A debit to Earned Fees for $500.
Business
1 answer:
Alenkinab [10]3 years ago
8 0

Answer:

c. A credit to Earned Fees for $1,000.

Explanation:

As for the information provided, we know

Unearned income is an income account, and therefore, will be credited at the time of recording.

Further, it is told that as on 31 December, 2009 out of the total unearned income of $1,500, $1,000 is earned.

Since it is earned it has to be accounted in current year, for this earned income will be credited and unearned income will be reversed for the amount of earned income that is for $1,000.

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The daily interest multiplier for a savings account paying 2% annual interest for 180 days
kolezko [41]

Answer:

$5,050.25  

Explanation:

The daily interest multiplier has already been stated to reflect interest earned over a 180-day investment timing horizon, hence , in order to determine the compound of $5,000 saved for 180 days, we simply multiply the daily interest multiplier for 180 days by the actual amount saved as shown below:

FV=PV*interest multiplier

FV=future value=amount in the savings account after 180 days=the unknow

PV=the amount placed in savings account= $5,000

interest multiplier= 1.010050

FV=$5,000* 1.010050

FV=$5,050.25  

5 0
3 years ago
Sophie Bennett has met the deductible for her doctor's visits. However, her insurance company requires her to pay 20% of all exp
aliina [53]
The correct answer is:  [C]:  "coinsurance" .
___________________________________________________
4 0
2 years ago
​Wellness, a healthy living​ magazine, collected in subscription revenue on May 31. Each subscriber will receive an issue of the
PIT_PIT [208]

Answer: $220,000

Explanation:

Using the Accrual Method of Accounting means that revenue is only to be recorded when it is earned i.e. when services have been delivered.

Any revenue received when the services have not been delivered will be recorded as Unearned Revenue.

With $528,000 in subscription revenue, the monthly subscription is;

= 528,000/12

= $44,000

From June to December would be 7 months so they would have earned;

= 44,000 * 7

= $308,000

The amount that they have not earned but have received would therefore be;

= 528,000 - 308,000

= $220,000

<em>This amount will be recorded after they finish deliveries of magazines in next year May. </em>

7 0
3 years ago
Sarasota Company has a factory machine with a book value of $86,300 and a remaining useful life of 7 years. It can be sold for $
RUDIKE [14]

Answer:

See the explanation for answer

Explanation:

Analysis showing whether the old machine should be retained or replaced is as prepared below:

                                                     Retain        Replace            Net Income

                                              Equipment     Equipment      Increase(Decrease)                            

Variable manufacturing costs 43,63,100 32,32,600 11,30,500

New machine costs                     0    3,59,000 -3,59,000

Sell old machine                             0          -33,500          33,500

Total                                       43,63,100   35,58,100   8,05,000

The old factory machine should be replaced as there is increase in net income by 805,000 when old machine is replaced.

4 0
3 years ago
Which of the following is a condition that triggers the penalty for negligence or intentional disregard? 1) the taxpayer underst
Vsevolod [243]

Answer:

2) the taxpayer shows negligence or disregard of the rules or regulations, causing an underpayment.

Explanation:

             When any taxpayer shows some negligence or if they disregard the rules and the regulations, causing an underpayment, then it leads to a penalty for the disregard or the negligence.

              Also, when a taxpayer intentionally understates his or her tax by a larger of $5000 or a 10% of his / her correct tax, then it is an accuracy related penalty.

              And, also the information related penalties which are levied for failure of  taxpayer to pay the amount of tax owed by  due date and also failure to filing the return by the due date.

Thus option (2) is correct.

5 0
3 years ago
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