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tatyana61 [14]
3 years ago
15

Apple Inc. is the number one online music retailer through its iTunes music store. Apple sells iTunes gift cards in $15, $25, an

d $50 increments. Assume Apple sells $19.8 million in iTunes gift cards in November, and customers redeem $12.8 million of the gift cards in December. Record the advance collection of $20 million for iTunes gift card.
Business
1 answer:
trapecia [35]3 years ago
7 0

Answer:

cash             20,000,000 debit

     unearned revenue        20,000,000 credit

Explanation:

Record the advance collection of $20 million for iTunes gift card.

When a gift card is sold, Apple Inc assume the obligation of latter provide iTunes in the near future or do  cash reimbursement therefore; this isn't revenue. It is a liability. Apple will generate revenue when the gift ard are redeem not at sale.

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Brian and Debbie must prepare a presentation for their Statistics class. As part of their presentation, they must do a series of
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Answer:

a. How much time would it take the two to complete the project if they divide the calculations equally and the slides equally? Briefly discuss.

Brian: 5 hours for PowerPoint and 5 hours for the calculations, total 10 hours.

Debbie: 10 hours for PowerPoint and 6 hours for the calculations, total 16 hours.

In total they would spend 26 hours combined.

If they divide the work equally, they will spend too much time.

b. How much time would it take the two to complete the project if they use comparative advantage and specialize in calculating or preparing slides? Briefly discuss

Brian will spend 10 hours doing PowerPoint slides and Debbie will spend 12 hours doping calculations. Total time spent 22 hours. By specializing they will save 4 hours.

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2 years ago
When looking for a car to buy, what can you learn from classified ads?
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4 0
3 years ago
On January 1, 2019, Shay Company issues $290,000 of 11%, 20-year bonds. The bonds sell for $282,750. Six years later, on January
abruzzese [7]

Answer:

1.

$7,250

2.

$284,562.5

3.

Dr. Bond Payable          $290,000

Dr. Loss on Retirement $18,487.5

Cr. Bond Discount         $5,437.5

Cr. Cash                         $303,050

Explanation:

1.

Bond is issued on the discount when it is issued below the face value.

Discount value = Face value - Issuance value = $290,000 - $282,750 = $7,250

2.

Carrying value of the bond is the net of face value of the bond and un-amortised bond discount.

Carrying value = 290,000 - ($7,250 x (20-5) / 20) = $284,562.5

3.

Bond Discount = $7,250 x 15/20 = $5,437.5

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