BUSINESS COLLEGE

For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)a.
Magnificent Magazines received $16,800 on December 31, 2015, for subscription services related to magazines that will be published and distributed in January through December 2016.

b.
Walker Window Washing paid $1,680 cash for supplies on December 31, 2015. As of January 31, 2016, $280 of these supplies had been used up.

c.
Indoor Raceway received $4,200 on December 31, 2015, from race participants for providing services for three races. One race is held in January 31, 2016, and the other two will be held in March 2016.

1. Record the receipt of $16,800 on December 31, 2015, for subscription services related to magazines that will be published and distributed from January through December 2016.

2. Record the January 31, 2016 adjusting entry for the December 31, 2015 receipt of $16,800 for magazine subscriptions to be published January through December 2016.

3. Record the payment of $1,680 cash for supplies by Walker Window Washing on December 31, 2015. As of January 31, 2016, $280 of these supplies had been used up.

4. Record the January 31, 2016 adjusting entry for the December 31, 2015 cash payment of $1,680 for supplies. As of January 31, 2016, $280 of these supplies had been used up.

5. Record the receipt by Indoor Raceway of $4,200 on December 31, 2015, from race participants for providing services for three races. One race is held on January 31, 2016, and the other two will be held in March 2016.

6. Record the January 31, 2016 adjusting entry for the December 31, 2015 receipt of $4,200 from race participants for providing services for three races. One race is held on January 31, 2016 and the other two will be held in March 2016.

Answers

Answer 1

Answer:

Answer:

Journal Entries

a1) Magnificent Magazines

Date Details Dr Cr

$ $

December 31, 2015 Cash 16,800

Deferred Revenue-subscription 16,800

Being recognition of prepaid subscription service for the year 2016

a2) Magnificent Magazines

Date Details Dr Cr

$ $

January 31, 2016 Deferred Revenue-subscription 1,400

Revenue 1,400

Being revenue for the month of January 2016

b1) Walker Window Washing

Date Details Dr Cr

$ $

December 31, 2015 Prepaid expense-Supplies 1680

Cash 1680

Being recognition of advance payment for supplies

b2) Walker Window Washing

Date Details Dr Cr

$ $

January 31, 2016 Expense - supplies 280

Prepaid expense-Supplies 280

Being supply expense for the month of January

c1) Indoor Raceway

Date Details Dr Cr

$ $

December 31, 2015 Cash 4,200

Deferred Revenue 4,200

Being recognition of race income paid in advance

c2) Indoor Raceway

Date Details Dr Cr

$ $

January 31, 2016 Deferred Revenue 1,400

Revenue 1,400

Being revenue for the month of January 2016

Explanation:

a) For Magnificent Magazines, the total amount paid $16800 is given as an advance for services not yet rendered. This amount which is for 12 months is then recognized as revenue when the services as provided on a monthly basis = 16800/12 = 1400

b) Walker windows paid in advance for supplies amounting to $1680, this is an asset to the company (prepayment) and as at January 2016, only $280 had been utilized. The utilized $280 is therefore expensed to the income statement

c) For Indoor Raceway, the $4200 is a liability as the services have not been provided yet, hence deferred revenue and the revenue is recognized after the service has been rendered in the income statement. For January, being 4200/3 = 1400

Related Questions

The income statement for the Clothing Division of Tom Ron Surf Company is as follows: Sales $445,000 Operating expenses 270,000 Net operating income 175,000 Interest expense 35,000 Earnings before taxes 140,000 Income tax expense (30%) 42,000 Net income $ 98,000 How much is net operating profit after taxes
Pinewood Corp. used to have a strict hierarchical structure. Information was only given to those who required it. The new CEO, however, set up a flat organizational structure. The new system eliminates any barriers to information flow. Information that was previously available to managers alone is now given to employees as well. He also assigned mentors to new employees to help them in their jobs and enable them to perform better. Pinewood Corp. can now be described as a(n) ________ organization.
Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential bonuses b.a performance report identifying amounts of scrap c.a control report comparing direct material usage over time d.an annual report for external regulators such as the SEC
We learned about Cost-Volume-Profit analysis. Review a few of the break even examples in the chapter. 1. If only the selling price per unit of a product increases (variable cost per unit and total fixed costs do not change), does the breakeven point increase or decrease?2. Using Break Even Analysis, provide a unique mathematical example to support you answer. (Calculate the breakeven point for a base example, then increase the selling price and re-calculate your breakeven point.) Label all numbers in your examples."
ECB Co. has 1.15 million shares outstanding selling at $24 per share. It plans to repurchase 97,000 shares at the market price using its cash reserves. What will be its market capitalization after the repurchase? What will be its stock price?

When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway. Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Janet places a value of $125,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Janet simply bids $125,000/2 = $5,000 and wins the piece of art.

The expected price paid by Kenji, with no other bidders present, is $:_________
Suppose the owner Of the artwork manages to recruit another bidder, Manuel, to the auction. Manuel is known to value the art piece at $8,000.
The expected price paid by Kenji, given the presence of the second bidder Manuel, is $:_________

Answers

Please find attached

Answer and Explanation:

1. If there are no other bidders present as from question them we can conclude that Kenji would buy the art piece for $5000. See question

2. If there is a bidder present in the name of Manuel who would bid for $8000 then Kenji would bid at $8000 and win the bid for the art piece. See question. Kenji would bid at price of 2nd highest bidder to win the bid for art piece

Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units

Answers

Answer and Explanation:

1. The computation of the total expected dollar sales for next period is given below:

Sales $4,410,000

Less: variable cost $1,764,000

Contribution margin $2,646,000

Less: fixed cost $2,364,000

Pre tax income $282,000

2. The number of units that should be sold is

= $2,646,000 ÷ $63 per unit

= 42,000 units

In this way it should be calculated

On July 15, 2021, the Nixon Car Company purchased 2,200 tires from the Harwell Company for $45 each. The terms of the sale were 2/10, n/30. Nixon uses a perpetual inventory system and the gross method of accounting for purchase discounts.

Answers

Explanation:

The journal entries are shown below:

On July 15:

Purchase A/c Dr $97,020

To Accounts payable $97,020

(By buying goods on credit with discount), the following are shown in the estimates of tire sales following application of the discount:

= Number of tires × price per tire - discount rate

= 2,200 tires × $45 - 2%

= $99,000 - $1,980

= $97,020

On July 23:

Account payable A/c Dr $97,020

To Cash A/c $97,020

(Being payment is made)

On August 15:

Account payable A/c Dr $97,020

Interest expense A/c Dr $1,980

To Cash A/c $99,000

(Being payment is made on late interval)

________ is an Internet marketing strategy used to increase the quantity and quality of traffic from search engines, often by improving the site's position in result lists.A.
Search engine optimization
B.
Search engine marketing
C.
A clickthrough rate
D.
Geotargeting
E.
Content farming

Answers

Answer:

Explanation:

A machine does three setups per production cycle. Each setup takes 20 minutes. The processing time is 0.5 minute. What batch size achieves a capacity of 24 units per hour

Answers

Answer: A batch size of 30units

Explanation:

The set up time is given as 20 Minutes per production cycle, Production cycle for the machine has 3 cycles

Therefore the set uo time for the cycles = 20 mins x 3= 60 minutes

Processing time = 0.5 minutes

Capacity = 24units per hour , changing to minutes we have

24 units / 60 minutes = 6/ 15 = 2/5 = 0.4 minutes

Capacity = Batch size / Set up time + batch size x processing time per unit

0.4 = B/ 60 + B X 0.5

0.4 = B/60 + 0.5B

0.4( 60 + 0.5B) = B

24 + 0.2B=B

24=B-0.2B

0.8B=24

B =24/0.8

Batch size = 30 can be achieve at a capacity of 24 units per hour.

in which order would the expectancy theory place the following events? a) outcome valence, performance, effort b) performance, effort, outcome valence c) effort, outcome valence, performance d) performance, outcome valence, effort e) effort, performance, outcome valence

Answers

Answer: e. effort, performance, outcome valence

Explanation:

The expectancy theory analyses and explains the reason why people behave the way they do. The expectancy theory explains that individual behave the way they do because they believe their efforts which they put into a particular activity will bring about an outcome.

The first thing that comes first is the effort which one puts into an activity, after then is the performance and lastly the outcome.

Other Questions

Barton's Taco Tico has four taco makers and ten other employees who take orders from customers and perform other tasks. The four taco makers and the other employees are paid an hourly wage. How would you classify (1) the wages paid to the taco makers and other employees and (2) materials (e.g., cheeses, salsa, tomatoes, lettuce, taco shells, etc.) used to make the tacos?A Fixed Cost Fixed B Fixed Cost Variable C Variable Cost Fixed D Variable Cost VariableA) Choice C B) Choice D C) Choice A D) Choice B

Apple's $3 billion acquisition of Beats Electronics and Beats Music in 2014 was an attractive strategy option for entering promising new industries in headphones and streaming music services because it

Universal containers has included its orders as an external data object into Salesforce. You want to create a relationship between Accounts and the Orders object (one-to-many relationship) leveraging a key field for account which is on both external object and Account. Which relationship do you create?

If the CPI was 104 in 1967 and is 390 today, then $10 in 1967 purchased the same amount of goods and services as Group of answer choices $37.50 purchases today. $2.67 purchases today. $39.00 purchases today. $104.00 purchases today. None of the options is correct.