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sukhopar [10]
3 years ago
15

Seadrill Engineering licensed software to oil-drilling firms for 5 years. In addition to providing the software, the company als

o provides consulting services and support to ensure smooth operation of the software. The total transaction price is $420,000. Based on standalone values, the company estimates the consulting services and support have a value of $120,000 and the software license has a value of $300,000. Assuming the performance obligations are not interdependent, the journal entry to record the transaction includes:
a. a credit to Sales Revenue of $420,000.
b. a credit to Unearned Service Revenue of $120,000.
c. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000.
d. a credit to Service Revenue of $120,000.
Business
1 answer:
puteri [66]3 years ago
7 0

Answer:

c. a credit to Sales Revenue for $300,000 and a credit to Unearned Service Revenue of $120,000.

Explanation:

In the scenario of accepting money for an extended warranty/support service, the seller in the case has agrees to provide services in the future. The revenue is not earned until the earning process is substantially completed in the future. So the correct option is c.

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use the adjusted trial balance for Stockton Company to answer the question that follow. Stockton Company Adjusted Trial Balance
Lostsunrise [7]

Answer:

b. $6,200

Explanation:

<u>Assets:</u> things or right owned by the company which can generate cash in the future

<u>Liabilities:</u> obligation to pay or do from the company in favor of third parties.

<u>Equity:</u> capital accounts and earnings from the business

Based on this definition we can determinate the following liabilities accounts:

Accounts Payable 1,900

Notes Payable    <u>  4,300  </u>

Total liabilities       6,200

3 0
3 years ago
What is the primary source of revenue for the government?
kykrilka [37]

Answer:

Individual income tax

Explanation:

Well are government uses tax for the USA too fund money for the government so the first one is right.

5 0
3 years ago
Large vertical drum struck from either side with a covered mallet
sergiy2304 [10]
That would be a Bass Drum

3 0
3 years ago
A new project would require an immediate increase in raw materials in the amount $6,000. The firm expects that accounts payable
Monica [59]

Answer:

<em>The project will increase the net working capital of the firm by $4000</em>

Explanation:

Net working capital measure how fast a company can convert its asset to cash, the networking capital can be obtained with the expression below;

net working capital (NWC) = current assets - current liabilities

Current asset = Increase in raw materials = $6,000

Current liabilities  = accounts payable increase =  $2,000

NWC= Increase in raw materials-increase in accounts payable

          =$6,000 -$2,000

           =$4000

Therefore this project will increase the net working capital of the firm by $4000

3 0
3 years ago
An example of a risk is _____. <br> taxes <br> insurance<br> an employee injury<br> rent
andre [41]
I believe the answer is: Injury
Risk refers to the danger or negative outcomes that arise when we decided to follow a certain decision.
From the options above, taxes and rent are considered as Obligations rather than a risk.
And insurance is considered as risk management, not the risk itself.
7 0
3 years ago
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