In command economy, who makes production decisions?

For each separate case below, follow the three-step process for adjusting the unearned revenue liability account at December 31

Vadim26 [7]

Answer:

1. Assume no other adjusting entries are made during the year a. Tao Co. receives $10,000 cash in advance for four months of legal services on October 1, 2017, and records it by debiting Cash and crediting Unearned Revenue both for $10,000. It is now December 31, 2017, and Tao has provided legal services as planned. hat adjusting entry should Tao make to account for the work performed from October 1 through December 31, 2017?

Step 1: Unearned Revenue has a credit balance of $10,000

Step 2: Unearned Revenue should have a credit balance of $2,500 only.

Step 3: Adjusting Journal Entry:

Debit Unearned Revenue $7,500

Credit Service Revenue $7,500

To record revenue for services performed to December 31, 2017.

2. Caden started a new publication called Contest News. Its sub subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month from July through December Assume no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2017, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account pay $24 to receive 12 monthly issues.

Step 1: Unearned Subscription Revenue has a credit balance of $2,400

Step 2: Unearned Subscription Revenue should have a credit balance of only $1,200.

Step 3: Adjusting Journal Entry:

Debit Unearned Subscription Revenue $1,200

Credit Subscription Revenue $1,200

To record subscription revenue for services performed to December 31, 2017.

Explanation:

Tao Co and Caden follow the three-step process of adjusting unearned revenue liability accounts at year-end. The purpose of the steps is to ensure that correct amounts remain as balances in the unearned revenue accounts. The steps also help to adjust the Earned Revenue account to its proper amount in recognition of goods or services provided in accordance with the accrual concept and the matching principle of generally accepted accounting principles.

8 0

2 years ago

Which of the following is true about conflicts of interest?

Vedmedyk [2.9K]

Answer: Option B

Explanation: In simple words, conflict of interest refers to a situation when a person have the power to make a certain decision from which he or she gets to have some special benefit.

Therefore, conflict of interest always results in the scope bias. As the individual in the power can use his or her position that can lead to benefit of him or loss of others or both.

Hence from the above we can conclude that the correct option is B.

5 0

3 years ago

As a new investment adviser (IA) firm, your company wants to obtain more clients. In an attempt to do so, one of the employees s

IRISSAK [1]

Answer:

D) is not acceptable because such a guarantee would cause a conflict of interest pertaining to the IA's fiduciary duty to each client

Explanation:

The members of the North American Securities Administrators Association (NASAA) must follow their Model Rule which prohibits investment adviser firms from guaranteeing investment results, in other words they cannot guarantee a minimum profit.

In this case the employee suggested that if their clients didn't earn a minimum 12% profit, then they would refund any fees collected. But the IA firm is not allowed to guarantee the 12% value increase or profit.

8 0

3 years ago

Washington Inc. issued $705,000 of 6%, 20-year bonds at 98 on January 1, 2009. Through January 1, 2017, Washington amortized $8,

Mashcka [7]

Answer:D.$14,100 gain

Explanation:

The par value of a bond is $100 when it's issued below the price it's issued at a discount which is a loss to the firm and when it's issued above the par value, it's issued at a premium which is a gain.

The issue of $705,000 means 7050 numbers were issued and retiring it $102 means at a premium of $2 per bond and a total of N14,100 gain.

7 0

3 years ago

Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei

Juli2301 [7.4K]

Answer:

<h2>The journal entry is shown below:</h2>

Explanation:

The journal entry for recording the establishment of the fund is as:

On September 1

Petty cash A/c.....................Dr $250

Cash A/c...........................Cr $250

Being recording the petty cash in the books

As creating the fund for the petty cash in the books, the account of petty cash is debited as there is increase in the assets which is debited. And the petty cash is created against cash. Therefore, the cash account is credited.

3 0

3 years ago