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
notka56 [123]
3 years ago
12

Action Quest Games Inc. adjusts its accounts annually. The following information is available for the year ended December 31, 20

17.
1. Purchased a 1-year insurance policy on June 1 for $1,440 cash.
2. Paid $5,800 on August 31 for 5 months rent in advance.
3. On September 4, received $4,230 cash in advance from a corporation to sponsor a game each month for a total of 9 months for the most improved students at a local school.
4. Signed a contract for cleaning services starting December 1 for $950 per month. Paid for the first 2 months on November 30.
5. On December 5, received $1,400 in advance from a gaming club. Determined that on December 31, $350 of these games had not yet been played.
For each of the above transactions, prepare the adjusting journal entry that is required on December 31.
Business
1 answer:
STALIN [3.7K]3 years ago
7 0

Answer:

Explanation:

1. Monthly insurance =  (1140/12) =120

Insurance expenses = 120* 7= 840

Debit insurance expenses 840 , Credit prepaid insurance 840

2. Rent in advance for 5 months = 5800

Monthly rent = 5800/5 =1160

Rent for 4 months till December 31 = 1160*4 = 4640

Debit rent expenses 4640 , Credit Prepaid rent 4640

3.Unearned revenue for 9 months = 4230

Monthly  revenue =  470

Revenue earned = 470*4 =1880

Debit revenue 1880 , credit unearned revenue 1880

4.Prepaid cleaning expense 950* 2 = 1900

Debit cleaning service 950 , credit prepaid cleaning service 950

5.Unearned cash revenue =1400

cash revenue earned = 1400-350 = 1050

Debit revenue 1050 , credit unearned revenue 1050

You might be interested in
A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded
djverab [1.8K]

Answer:

A residential property is greatly diminished in value because of the constant noise of jets taking off from a recently expanded municipal airport. In order to be compensated for this loss, the owner could:

B.bring a suit alleging inverse condemnation

Explanation:

A law suit is a claim or legal problem taken to a court of law by an individual or organization rather than the authorities for a legal decision to be made. In the case above, the residential property diminished in value after constant noise of jets taking off from a recently expanded municipal airport. The loss in value is as a result of the recently expanded municipal airport and the property owner wants to be compensated for this loss.

In law, there are different terminologies and phrases that have specific meaning, some of them are as follows;

1. Inverse condemnation

Inverse condemnation is a case where a government entity takes private property or influences the value of that private property in one way or another then fails to compensate. In our case, this law suit can apply since the municipal airport is under the jurisdiction of the government and there action of expanding the airport caused a decline in value of neighboring residential property thus they should compensate the owner for this loss. The owner can bring a suit alleging inverse compensation.

3 0
3 years ago
Who is responsible for applying skills, knowledge, and project management tools and techniques to project activities to successf
spin [16.1K]

Answer:

The correct answer is: Project manager.

Explanation:

The Project manager is the executive in corporations to oversee the accomplishments of the objectives of the firm. These professionals help to set, perform, evaluate, and adjust the goals of the company according to the current situation. They come up with different tools to effectively achieve that.

3 0
3 years ago
Purchasing cruelty free products can have a positive impact on
MakcuM [25]
The beauty industry and it’s healthier. Also it protects a lot of animals from getting the product tested on them
8 0
2 years ago
Accounts receivable from sales to customers amounted to $40,000 and $32,000 at the beginning and end of the year, respectively.
natima [27]

Answer:

a. $118,000

Explanation:

When preparing a cash flow statement, using indirect method we add decrease in current assets and we deduct increase in current assets.

Here it is provided that income reported = $110,000

Opening balance of accounts receivables = $40,000

Closing balance of accounts Receivables = $32,000

Change in Accounts receivables = Closing - Opening = $32,000 - $40,000 = - $8,000

Therefore there is decrease in accounts receivables which is a current asset.

Thus Cash Flow from operating activities

Net Income = $110,000

Add: Decrease in current assets = $8,000

Net cash flow from operating activity = $118,000

Correct option is

a. $118,000

6 0
3 years ago
In the long run, a monopolistically competitive firm will earn: (A) normal profits because economic profits will attract new fir
enot [183]

Answer: Option (A) is correct.

Explanation:

Correct Option: Normal profits because economic profits will attract new firms and there are no entry restrictions.

In a monopolistically competitive market, firms will earn an economic profit in the short run, so new firms attracted with these profits and decided to enter into the market in the long run.

There is no barriers on entry and exit of the firms in the monopolistically competitive market. When new firms enters into the market, as a result supply of differentiated products increases.

This causes the firm's market demand curve to shift leftwards. It will continue shifting to the left in the firm market demand curve till the point where it is nearly tangent to the average total cost curve.

At this point, firms earns zero normal profit and can earn normal profits in the long run same as a perfectly competitive firm.

3 0
3 years ago
Other questions:
  • A company sells digital music players and is introducing its latest player to the market. The company knows it can’t compete hea
    5·1 answer
  • Lisette is excited about her new home in Rome. She has been given the opportunity to learn about a new culture, form new friends
    8·1 answer
  • Which entrepreneur had a significant impact on the cosmetics industry?
    6·1 answer
  • 1. Describe the effect each action below will have on the money supply. Explain your reasoning.
    14·1 answer
  • Whippet Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2017, at a co
    15·1 answer
  • 9) An investment of $20,000 earns interest at an annual rate of 3.6% compounded continuously. a) Find the instantaneous rate of
    11·1 answer
  • They gather information and conduct research to determine what customers want. They also plan and develop products and make deci
    14·1 answer
  • Does the temporal difference learning of optimal utility values (U) require knowledge of the transition probability tables
    10·1 answer
  • This year, Gogo Inc. granted a nonqualified stock option to Mrs. Mill to buy 10,000 shares of Gogo stock for $8 per share for fi
    7·1 answer
  • . Pharmacist is an important profession. give reasion​
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!