Answer: $120,000
Explanation:
Given that,
On June 30,
Subscription revenue collected = $240,000
Each subscriber will receive = magazine in each of the next 12 months
No. of months from July to December = 6
Here, company is using accrual method of accounting,
Amount of Subscription Revenue that has been earned by the end of December:
= $120,000
Answer:
$22000 and $50000.
Explanation:
Given: Purchased value of equipment- $72000.
Residual value- $6000
Estimated useful life of equipment- $ 5 years.
Now, finding value of depreciation for 2011 using the sum of the years digits method.
Depreciation cost=
⇒ Depreciation cost=
∴ Depreciation cost= $66000.
Depreciation fraction for 1st year=
Depreciation expense for 1st year=
∴ Depreciation for 2011 is $22000.
Next, lets find out the book value at the end of first year.
Book value=
Book value=
∴ Book value at December 2011 is $50000.