1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nat2105 [25]
2 years ago
9

Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim

e-limited offer in which it gives the phone for free and sells the 12 months of cellular service for $560. Each phone costs SKY $280, which it accounts for in its perpetual inventory system. On July 1, SKY sells one of the special packages, delivers the phone, collects the $560 cash, and starts the cellular service.
What journal entries would SKY record on July 1 and July 31?

a. Record receipt of cash.
b. Record the sales of cellular service for 12 months.
c. Record the cost of goods sold.
d. Record the deferred revenue.
Business
1 answer:
jeka942 years ago
3 0

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr,                                             $560

            To Deferred revenue                                  $560

(Being cash is received)

2. Deferred revenue                             $336

            To Sales revenue                                         $336

(Being 12 months sales service is recorded)

3. Cost of goods sold                            $280

            To Inventory                                                 $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12)            $28

            To Service revenue                                      $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

You might be interested in
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part
slavikrds [6]
Pension plans are a type of retirement plan in which the employee and employer make contributions. These contributions are invested and to be received upon retirement. In most all cases pension plans are tax exempt. The two types of pension plans are defined benefit plans and defined contribution plans. A defined benefit plan guarantees an amount upon retirement no matter how the investment performed. A defined contribution plan is not a guaranteed amount and heavily depends on the investment performance.
5 0
2 years ago
Morris' company decided in the beginning of 2017 that they need to make $6,000,000 worth of improvements starting january 1, 202
Ne4ueva [31]
<span>In order to determine the amount of the deposits, you must divide the overall amount needed by the future value of annuity due of 1 at 10% for 4 periods.  $6,000,000 / 5.11 = $1,174,168.</span>
7 0
3 years ago
Displays more information on the spreadsheet?
nignag [31]

<em>When you ask a question like this, you have to include a picture of what you are talking about. I'll walk you through the process. When you first start asking a question there is an option for a little paperclip on the bottom of the question box. Click on that and then select the file (the photo is considered a file by the computer) then type in what the question is and simple hit ask question. Now it will post the picture along with your question.</em>

<em />

<em>Hope this helps,</em>

<em>Miri</em>

6 0
3 years ago
A lack of the resources needed to go into producing goods and services is called what
kotykmax [81]
Goods service resources
8 0
3 years ago
On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions oc
Musya8 [376]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Download xlsx
8 0
3 years ago
Other questions:
  • If government policy allows a country's currency to be determined in the exchange rate market, then that currency will be subjec
    7·1 answer
  • The initial stage in the consumer purchase decision process involves perceiving a difference between a person's ideal and actual
    11·1 answer
  • Human services can best be defined or described as _____.
    6·1 answer
  • Zync Corporation offers a block of its securities for sale to the investment banker that submits the highest price of all intere
    5·1 answer
  • The legal responsibility for the financial cost of another person's losses or injuries is referred to as:
    8·1 answer
  • A______is a breakdown of a project into its various component parts with the
    12·1 answer
  • Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
    9·1 answer
  • Discuss <br>any five roles of<br>entrepreneurship in the economic<br>growth of a country ​
    11·1 answer
  • : Identify your top four work values. Work values are the elements of
    10·1 answer
  • Predictors and Effects of Participation in Peer Support: A Prospective Structural Equation Modeling Analysis
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!