1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
At your next meeting with the senior management team, you suggest this, and you're met with a lot of blank looks. The managers d
Nostrana [21]

Answer and explanation:

Under such a scenario, it is important to highlight that the SWOT analysis is useful to spot the internal Strengths and Weaknesses of the firm as well as the external Opportunities and Threats of the market. The SWOT analysis is a helpful tool that allows companies to understand what their core competencies are as well as the components that need improvement. At the same time, the SWOT analysis gives the firm an idea of what are the sectors of the market that could bring potential profits for the entity and which ones represent potential losses.

7 0
3 years ago
A(n) is a request by an account holder to the bank not to pay a specific payment.
Rasek [7]

the answer is stop payment!

3 0
3 years ago
Read 2 more answers
Insurance can help you: A.minimize monthly expenses B.financially protect against unexpected accidents C.reduce the chances of g
Hitman42 [59]
<span>B.financially protect against unexpected accidents definitely the answer.</span>
6 0
2 years ago
Read 2 more answers
What is a trade off?
bezimeni [28]

a balance achieved between two desirable but incompatible features; a compromise.

"a trade-off between objectivity and relevance"

6 0
3 years ago
As the manager of Margarita Mexican​ Restaurant, you must deal with a variety of business transactions. Provide an explanation f
Shalnov [3]

Answer:

A. Debit Equipment and credit Cash.

  • You purchase equipment and you pay in cash.

B. Debit Dividends and credit Cash.

  • You paid cash dividends.

C. Debit Wages Payable and credit Cash.

  • You paid wages that you owed to your employees. Generally wages are paid at the end of the week and not all months end on a weekend. So you must record wages payable until you actually pay the wages.

D. Debit Equipment and credit Common Stock.

  • You received equipment in exchange for common stock.

E. Debit Cash and credit Unearned Revenue.

  • You received cash in advance for some food that you will deliver in the future.

F. Debit Advertising Expense and credit Cash.

  • You incurred in advertising costs and you paid them in cash.

G. Debit Cash and credit Service Revenue.

  • You sold meals and your clients paid you in cash.

7 0
3 years ago
Other questions:
  • Complete the sentences to identify the primary and secondary audience of Lee’s business message.
    13·1 answer
  • Imagine that you are looking for a job as a interior decorator. Describe four specific ways that you could look for job leads
    14·2 answers
  • How can investors receive compounding returns? A: by selecting a savings account that has a higher interest rate B: by investing
    10·1 answer
  • Jonathan is the CEO of a cell phone manufacturing company. At the company's Annual General Meeting, he made an announcement to t
    9·1 answer
  • Middlesex manufacturing uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. L
    9·1 answer
  • Heidi comes from an upper-middle-class family, and after high school she went through a period of exploration. She spent some ti
    8·1 answer
  • Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $69,200. The company's beginning merchand
    15·1 answer
  • In ________ organizational cultures, more individuality is shown through the organization’s rules being less strictly applied.
    8·1 answer
  • PLEASE HELP URGENT 30 points!
    6·2 answers
  • In reviewing research on power, you discover that there are three other common sources of power in organizations. Which of the f
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!