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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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Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
saw5 [17]

Answer:

Correct option is C

Explanation:

Total E&P = $ 160000

Total voting Right Sold = 50/ (100+100) = 25%

Reduction of E& P due to exchange = Total E&P*Total voting Right Sold

Reduction of E& P due to exchange = 160000*25%

Reduction of E& P due to exchange = 40000

Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised

Reduction of E& P Lower of 40000 or (50*1000)

Reduction of E& P Lower of 40000 or 50000

Answer

C. A reduction of $40,000 in E&P because of the exchange.

 

8 0
3 years ago
A company has a process that results in 36000 pounds of Product A that can be sold for $8 per pound. An alternative would be to
RoseWind [281]

Answer:

Sell now, the company will be better off by $25,200

Explanation:

The effect of the action of shown below:-

Profits if sold now = Product Pound A × Sold pound

= 36,000 pounds × $8

= $288,000

If processed further Profits

= (36,000 x $14) - $241,200

= $262,800

Selling product A now = Profits if sold now - Further Profits

= $288,000 - $262,800

= $25,200

6 0
3 years ago
My left shoulder hurts but I'm not sure if its torn or if i should work out today as well (its not soreness)
STALIN [3.7K]
Most likely you've pulled a muscle. The pain will probably go away in the next day or so, if not you should wrap it with a sprain cast in case you sprained it somehow. But definitely do not work out today. That could worsen it and make the pain more severe.

hope this helps!
5 0
4 years ago
Read 2 more answers
Your local coffee shop has announced new hours of operation. Previously: 7 am – 4 pm Monday thru Friday and 7am to Noon Saturday
Jet001 [13]
Your answer might be C , the pay has to be increased cause the hours increased,cant be b because the weekly payrool cant be same,ya feel?
5 0
4 years ago
Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is
nataly862011 [7]

Answer:

$0.25

Explanation:

The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:

MC = \$1.75-\$1.50 = \$0.25

The marginal cost of the sixth pencil is $0.25

4 0
4 years ago
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