Answer:
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Explanation:
Revenue is not recorded until the recognition criteria for the recognition of revenue has been met and this includes;
- the corresponding cost incurred in generating revenue can be reliably measured
- the goods or service has been delivered
Given that the service was performed in May, when half of the fee was received in April, the required entries then was
Debit Cash account
Credit Unearned revenue (with the amount received being half payment)
when the service was performed in May,revenue was earned
Debit Unearned revenue (with the amount received being half payment)
Debit Accounts receivable (with the amount yet to be received being half payment)
Credit Revenue (with the amount agreed for the service)
In June when the final payment is received,
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
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.
Answer:
AND
Explanation:
AND condition is used when we need to check for the condition in which both the given conditions are satisfied.
Here from the statements provided in the question, it can be observed that the vendor must have offices in both the cities i.e the condition should be followed that the vendor has the office in one city AND the other city.
Answer:
NPV= $31,808.91
Explanation:
Giving the following information:
Io= -$150,000.
The operating costs:
Year 1= $5,000
Year 2= $6,000
Year 3= $7,000
The benefits:
Year 1= $80,000
Year 2= $90,000
Year 3= $70,000
To calculate the Net Present Value (NPV) we need to use the following formula:
NPV= -Io + ∑[Cf/(1+i)^n]
Cf= cash flow
Io= -150,000
Cf1= 80,000 - 5,000= 75,000/1.04= $72,115.39
Cf2= 90,000 - 6,000= 84,000/1.04^2=$77,662.72
Cf3= 70,000 - 7,000= 63,000/1.04^3= $56,006.77
NPV= $31,808.91
Answer:
Explanation:
In a scenario such as this one, the broker-dealer is not required to disclose whether any guarantee of growth was made by the representative to induce the giving of the testimonial. This is backed by the FINRA rule on testimonials used in communications which states the following:
“Retail communications or correspondence providing any testimonial concerning the investment advice or investment performance of a member or its products must prominently disclose the following:
- The fact that the testimonial may not be representative of the experience of other customers.
- The fact that the testimonial is no guarantee of future performance or success.
- If more than $100 in value is paid for the testimonial, the fact that it is a paid testimonial.”
