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Stella [2.4K]
2 years ago
6

On April 1, Katie Inc. collected $2,400 from a customer for a 12-month membership starting on that date. On December 31, Katie I

nc. should credit:
Business
1 answer:
andrey2020 [161]2 years ago
5 0

On December 31, Katie Inc. should <u>credit </u><u>Membership Revenue</u><u> with </u><u>$1,800</u>.

<h3>What is Deferred Revenue?</h3>

Deferred revenue is recorded as a liability in Katie Inc.'s balance sheet because it represents a prepayment by its customer for membership services that are yet to be delivered.  By December 31, Katie would have earned 9 months out of the 12 months subscription.

<h3>Data Analysis:</h3>

April 1, Cash $2,400 Deferred Revenue $2,400

December 31 Deferred Revenue $1,800 Membership Revenue $1,800 ($2,400 x 9/12).

Thus, Katie Inc. should <u>credit its </u><u>Membership Revenue</u><u> account </u>on December 31 with $1,800.

Learn more about deferred revenue at brainly.com/question/24852569

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To keep the price of gas from rising quickly after Katrina, the government instituted price ceilings on the price of gasoline in
baherus [9]

Answer:

The correct answer is letter "D": shortages.

Explanation:

Price ceilings are price limits imposed by the government to avoid producers increasing the price of goods that can be considered as basic or necessary. Then, the price ceiling will increase the demand for those goods but not the supply. Under this scenario, there will be a shortage of that product because of the excess in demand over supply.

4 0
3 years ago
The following data are available for Something Strange: Issuance of bonds payable $100,000 Sale of investment 50,000 Issuance of
7nadin3 [17]

Answer:

Cash provided by financing activities = $130,000

Explanation:

Financing Activities are those activities which arrange source of money for the company and further any kind of cost in terms of dividend paid or interest paid towards such finance and repayment of such funds, are all included under such activities.

Here, in the given instance, we have

Issuance of bonds $100,000 Will generate cash inflow

Sale of investment is investing activity and not financing

Issuance of common stock $60,000 will generate cash inflow

Payment of cash dividends $30,000 is a cash outflow

Cash provided by financing activities = $100,000 + $60,000 - $30,000 = $130,000

5 0
3 years ago
The December 31, 2018, inventory of Tog Company, based on a physical count, was determined to be $470,000. Included in that coun
Anna [14]

Answer:

$600,000; $40,000 (understated); Reduced by $40,000; Reduced by $40,000.

Explanation:

Given that,

Physical count = $470,000

Cost of shipment of goods received = $70,000

Another supplier shipment costing = $30,000

Merchandise cost = $100,000

Correct December 31, 2018, inventory balance:

= Physical inventory + Merchandise inventory (FOB)

= $470,000 + ($30,000 + $100,000)

= $470,000 + $130,000

= $600,000

Change in cost of goods sold:

= Change in net purchase(Understated) + Change in ending inventories

= [$70,000 + $100,000] + (-$130,000)

= $170,000 - $130,000

= $40,000 (Understated)

Net income reduced by $40,000 and also, the retained earnings reduced by $40,000.

3 0
3 years ago
Everything that consumers evaluate when deciding whether to buy a good or service is called the
Hunter-Best [27]
Everything that consumers evaluate when deciding whether to buy a good or service is called the total product offer. Before making a decision to buy a product, a consumer will evaluate everything about the product from a need to a want, price, design, benefits you know it. When they have finished evaluating it, they make a decision whether or not they want to purchase the product or service. 
5 0
3 years ago
Perle, a dentist, billed Wood $600 for dental services. Wood paid Perle $200 cash and built a bookcase for Perle’s office in ful
Naddika [18.5K]

Answer:$600

Explanation:

The full amount of$600 will be credited to Perle as his service income on completion of the dental services and debited to wood account as a debtor.

The $200 will reduce the debt to $400 , the $400 which will be recorded through a journal by debiting bookcase and crediting Wood.

Narration. Recognition of bookcase built as debt payment.

7 0
3 years ago
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