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qaws [65]
3 years ago
6

Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or thr

ee-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $1,800,000 at December 31, 2010 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $450,000 at December 31, 2010.Service contracts still outstanding at December 31, 2010 expire as follows:During 2011 $380,000During 2012 570,000During 2013 350,000What amount should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet?a. $1,350,000.b. $1,300,000.c. $850,000.d. $500,000.
Business
1 answer:
natita [175]3 years ago
3 0

Answer:

The correct answer is b. $1,300,000

Explanation:

The computation of unearned service revenue is shown below:

= Outstanding service contracts for 2011 + Outstanding service contracts for 2012 + Outstanding service contracts for 2013

= $380,000 + $570,000 + $350,000

= $1,300,000

The other amounts are not considered in the computation part. So, it is ignored.

Thus, the $1,300,000 is the amount which should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet.

Hence, the correct answer is b. $1,300,000

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The factor that would not affect the position of the supply curve for cranberries is the popularity of cranberry drinks.

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An increase in the price of agricultural land and the cost of fertilizers increases the cost of producing cranberries . This would lead to an inward shift of the supply curve. On the other hand, a decrease in the price of  agricultural land and the cost of fertilizers would lead to an outward shift of the supply curve.

The development of a new pest control for cranberry production would lead  to an outward shift of the supply curve as more cranberries can be produced.

Please check the attached image for a graph showing an increase in supply. To learn more about the supply curve, please check: brainly.com/question/1915798

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3 years ago
Suppose a local bank increases the fees they charge for their bank accounts by 2020 percent. In​ response, the demand for their
Musya8 [376]

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Explanation:

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3 years ago
You want to buy a new sports car from Muscle Motors for $38,000. The contract is in the form of an annuity due for 60 months at
insens350 [35]

Answer:

$800.71

Explanation:

In this question we use the PMT formula that is shown on the attachment below:

Data provided in the question

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The formula is shown below:

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An account that generates interest income on the available balance in the account.
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An interest-bearing account is an account that generates interest income on the available balance in the account.

What is an interest-bearing account?

An interest-bearing account computes interest based on the balance outstanding on the loan or investment account, for instance, a monthly compounding deposit account where the interest paid on the account on monthly basis on the available balance before interest computation.

There also non interest-bearing account which only promises a particular amount when the deposit or investment account matures rather than paying on the balance.

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2 years ago
Suppose the government wants to change the level of output. If the LM curve is horizontal, then
Feliz [49]

Answer:

  • a. monetary policy is completely ineffective, whereas fiscal policy is highly effective.
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Explanation:

When the LM curve is horizontal, a change in money supply will not impact interest rates which would make monetary supply completely ineffective because people will be able to keep borrowing regardless of the money supply level in the economy.

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