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Pie
2 years ago
14

An advance payment of $1,000 for services was received on December 1 and was recorded as a liability. By the end of the year, $4

00 has been earned. What is the correct adjusting entry that should be include?
Business
2 answers:
Mrrafil [7]2 years ago
5 0

Answer:

Debit unearned revenues for $400

Explanation:

Adjusting entries are journal entries made to record revenues and expenses accounts. These entries are made at the end of an accounting cycle.

Payment received for services on December 1 that was recorded as a liability = $1,000

Amount earned by the end of the year = $400

Therefore,

adjusting entry: Debit unearned revenues for $400 so that expenses matched to the accounting period in which the revenue paying for them is earned.

serious [3.7K]2 years ago
3 0

Answer:

The answer is "$400"

Explanation:

Given:

advance payment = $ 1,000

by the end of year he earned= $ 400

So, the total eared value is $ 400 because it is the Debit unearned income.

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A service was performed for a client with payment due in 30 days what accounts are affected
marshall27 [118]

Answer:

b) debit accounts receivable, credit capital

Explanation:

Performing service is part of normal business activities. It generates revenue for the business.

Once a service has been performed, revenue increases. Revenue is an equity account (it increases the owner's equity). An increase to an equity account is recorded by crediting the account.

The payment will be received in 30 days. This is an increase in accounts receivables ( asset account). An increase in assets is recorded as a debit.

3 0
2 years ago
The Cheese Factory incurred the following costs related to acquiring a new piece of equipment: Cost of the equipment $ 50,000 Sa
kakasveta [241]

Answer:

The multiple choices missing from the question are:

a. $60,000.

b. $50,000.

c. $57,000.

d. $59,000.

Option D,$59000 is correct

Explanation:

The recorded cost of the equipment is made of purchase cost,the sales tax since it is not recoverable,shipping cost as well as the installation cost.

The recorded cost is computed thus:

Purchase price   $50,000

sales tax              $4,000

shipping               $3,000

installation            $2,000

total  cost            $59,000

The rationale for including shipping and installation costs is that asset cost should include cost of bringing the asset to current location(shipping) and condition(installation)

4 0
3 years ago
Read 2 more answers
Failing to respond to the needs of internal customers will diminish the confidence these users have in purchasing, and they may
Solnce55 [7]

Answer:

The correct answer is Maverick buying.

Explanation:

Maverick, is a wayward, a dissident, a rebel, someone who refuses to abide by the rules or resists joining a group. The term originates from Samuel A. Maverick (1803-1870), a Texas rancher, who refused to mark his cattle.

The "maverick buying", refers to purchases out of contract or channels established by an organization. For example, the Corporate Supply department negotiates a competitive price for certain particular models of laptops with a distributor. Days later, someone from the Human Resources department requests the purchase of a much more expensive model, for which a discount has not been negotiated.

Another example: traveling in an airline and staying in a hotel other than those with which the company has signed agreements.

The impact of bypassing the preferred purchasing channels and systems can vary from operational inefficiency, to missing out on the advantages of corporate contract negotiation, large fines and even jail time.

4 0
3 years ago
Which of the following actions would improve your credit score
s2008m [1.1K]
If this question has the same set of choices like the previous ones, the answer is:
<span>Paying off your credit card bill.
</span>A credit score is a numerical expression  of a person's credit files, to represent his creditworthiness <span>based on a level analysis. Paying off your credit card bill would improve your credit score. </span>
3 0
3 years ago
Castillo Company has a defined benefit pension plan. At the end of the reporting year, the following data were available: beginn
Luda [366]

Answer:

$23,000

Explanation:

Before recording the journal entry, first we have to determine the pension expense amount which is shown below:

Pension expense = service cost + interest cost - expected return on plan assets

= $18,000 + $5,000 - $10,000

= $13,000

Now the journal entry would be

Pension expense A/c Dr $13,000

Plan asset A/c Dr $10,000

        To PBO A/c $23,000

(Being the annual pension cost is recorded)

All other information which is given is not relevant. Hence, ignored it

6 0
3 years ago
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