Answer:
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Explanation:
Revenue is not recorded until the recognition criteria for the recognition of revenue has been met and this includes;
- the corresponding cost incurred in generating revenue can be reliably measured
- the goods or service has been delivered
Given that the service was performed in May, when half of the fee was received in April, the required entries then was
Debit Cash account
Credit Unearned revenue (with the amount received being half payment)
when the service was performed in May,revenue was earned
Debit Unearned revenue (with the amount received being half payment)
Debit Accounts receivable (with the amount yet to be received being half payment)
Credit Revenue (with the amount agreed for the service)
In June when the final payment is received,
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Answer:
C) Items in transit sold f.o.b. destination.
Explanation:
Ending inventory = all items in hand plus all purchases bought FOB shipping point plus all sales sold FOB destination.
FOB shipping point means that the title of the goods is transferred once the goods leave the seller's warehouse.
FOB destination point means that the title of the goods is transferred only after the goods arrive to the buyer's warehouse.
There are video tutorials online. It might be a lot easier to understand it if you see it, rather than read it. Hope this helps! :)
Answer:
Option B (150) is the correct answer.
Explanation:
Given:
Nominal GDP,
= $900
Money velocity,
= 6
As we know,
⇒ 
By putting the vales, we get
⇒ 
⇒ 
⇒ 
