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spin [16.1K]
3 years ago
5

A company records the fees for legal services paid in advance by its clients in an account called Unearned Legal Fees. If the co

mpany fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned on effect will be
An understatement of equity T/F
Business
2 answers:
White raven [17]3 years ago
5 0

Answer:

True

Explanation:

Now the initial jounal entry of the Unearned Fees was recorded as:

Dr Cash received XX

Cr        Unearned Fees XX ........... Is a liability

Now the reason why the statement is true can be best explained from the following equation:

Equity = Ordinary Stock + (Revenue - Expense - Dividend)

Now just look at the above equation and the journal entry, the unearned fees increased the liability and if this amount is not waived off to the amount the unearned fees are converted to earnings, I mean if you have received the amount for 3 months services in advance and only one month services are delivered then the 1/3 part of the unearned fees will recognized as earned. If it is not complied then we can see in the above equation that the revenue would decrease and this decrease will decrease the equity.

mezya [45]3 years ago
5 0

Answer:

T

Explanation:

At the end of each accounting year, the net income made is posted to the year end retained earnings thus increasing the shareholder's equity in the balance sheet.

When fees are received in advance,

Debit Cash account

Credit Unearned Legal Fees

when fees are earned

Debit Unearned Legal Fees

Credit Revenue

Thus, If the company fails to make the end-of-period adjusting entry to record the portion of these fees that has been earned on effect will be an understatement of revenue which will result in an understatement of net income and thus an understatement of equity.

True

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nalin [4]

The question is incorrect. The correct question is as follows,

A nursery has $55,000 of inventory in dogwood trees and red maple trees. The profit on a dogwood tree is 28% and the profit on a red maple tree is 17%. The profit for the entire stock is 20%. How much was invested in each type of tree?

Answer:

The investment in Dogwood trees is $15000.

The investment in red maple trees is = $40000

Explanation:

To calculate the investment in each type of tree, we will say that x was invested in dogwood trees and the investment in red maple trees was 55000-x.

The profit on the entire investment is calculated as the weighted average of the profit on dogwood trees and profit on the red maple trees. The formula for overall profit can be written as follows,

Overall profit = Investment in dogwood / total investment * profit % on dogwood  +  Investment in red maple / total investment * profit % on red maple

0.2 = x / 55000 * 0.28  +  (55000 - x) / 55000 * 0.17

0.2 = 0.28x / 55000  +  (9350 - 0.17x) / 55000

0.2 = 0.28x + 9350 - 0.17x / 55000

0.2 * 55000 = 0.11x + 9350

11000 = 0.11x + 9350

11000 - 9350 = 0.11x

1650 / 0.11 = x

x = $15000

If x is $15000, this means that the investment in Dogwood trees is $15000.

If x is $15000, this means that the investment in red maple trees is 55000 - 15000 = $40000

4 0
2 years ago
Janice developed a media plan for a client that recommended 10 commercials in a television program that delivered 4 million targ
Kisachek [45]

Answer:

49 million impressions

Explanation:

In media gross impressions are defined as the total number of people that represented in a media schedule. When a media campaign is launched unique impressions are counted to make up gross impression.

For example on digital marketing a visit from a customer is counted as one impression by cookies. Once a new user logs in a new impression is created.

In this instance for the television program total number of impressions for one advert can be calculated as

Impression = Average persons * Number of spots (commercials)

Impression= 4 million persons * 10

Impression = 40 million

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Impression = 3million * 3

Impression = 9 million

Therefore total impression of the campaign

Gross impression= 40 million + 9 million

Gross impression= 49 million

5 0
3 years ago
Stephanie manages a team that has gone through a tremendous amount of transition over the last year. There have been multiple re
fiasKO [112]

Answer:

a Disturbance Handle

Explanation:

7 0
2 years ago
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rewona [7]

Answer:

so near its maturity that it presents insignificant risk of changes in interest rates.

Explanation:

As we know that the cash equivalent i.e .short term and also classified as the highly liquid investment that is always ready to convert into the cash amount i.e. near to its maturity also at the same time it represent the non-significant changes risk with respective to the rate of interest

Therefore the last option is correct

8 0
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Companies may want to consider budgeting for contributions to employee loss expenses (such as funerals) as well as for counselin
nikdorinn [45]

Answer: Option (A)

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8 0
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