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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

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Boyd's Bicycle Sales and Repairs Co. offers a 6-month warranty on all new bicycle purchases. Based on history, Boyd determines t
guapka [62]

Answer:

Boyd will record Warranty Expense in the amount of $400 for the month.

Explanation:

Warraty expense is an obligation on the business because business idmliable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.

Sales = $20,000

Warranty repair = 2% of Sales

Warranty Expnese = Sales x Warranty repairs percentage

Warranty Expnese = $20,000 x 2%

Warranty Expnese = $400

4 0
3 years ago
At the beginning of its current fiscal year, Willie Corp.’s balance sheet showed assets of $10,100 and liabilities of $6,900. Du
Viefleur [7K]

Answer:

Dividends = 6,000

Explanation:

Ending liabilities = Beginning liabilities - Decrease in liabilities

                           = $6,900 - $1,200

                           = $5,700

Ending net assets = Ending total assets - Ending total liability

 $3,900                = Ending total assets - $5,700

Ending total assets = $3,900 + $5,700

                                = $9,600

Ending RE =  Ending total assets - Ending liabilities

                 = $9,600 - $5,700

                 = $3,900

Dividend = Beginning RE + Net income - Ending RE

               = $6,900 + $3,000 - $3,900

               = $6,000

3 0
3 years ago
Developing an awareness of your perceptions is an important part of ______________.
Ede4ka [16]
Developing an awareness of your perceptions is an important part of <span>building perceptual accuracy.

>Perceptual accuracy is c</span><span>hecking the accuracy of your perception involves separating interpretation from.
></span>Enculturation sometimes termed as acculturation is the process by which people learn the needs of their surrounding culture<span> and earn values and behaviors . I hope this helps!!

</span>
3 0
2 years ago
Which of the following segments of PESTEL analysis includes elements such as tax policies and changes in trade restrictions and
slavikrds [6]

Answer:

A. Political

Explanation:

PESTEL analysis is an instrument used to analyze and monitor the macro economic environmental factors than can have an effect on the organization.

PESTEL is an acronym for

P - Political

E - Economic

S - Social

T - Technology

E - Environmental

L - Legal

Political Factor - This is all about the role government plays in the economy. This can include – government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions etc.

Studying this would enable organizations respond better to current trends and prepare better for future legislations.

8 0
3 years ago
Foreign _____ involves a firm buying the rights to produce, promote, and use the domestic firm's trademark/patents in a defined
VARVARA [1.3K]
The answer is B. Franchising

Licensing also use a similiar Model. But The Difference is When you do a Franchising , The company that own the trademark will give as support to aid the franchise. They also make sure that each branches do not cannibalized each others' profit.

In a Licensing model, the company who own the trademark won't give you any support whatsoever.
6 0
3 years ago
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