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Liabilities created when a customer pays in advance for products or services before the revenue is earned.
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Unearned revenues are generally Multiple Choice 0 Liabilities created when a customer pays in advance for...
Amounts received in advance from customers for future products or services: Multiple Choice o Are revenues. o Incre...
Amounts received in advance from customers for future products or services: Multiple Choice o Are revenues. o Increase income. o Are liabilities. o Are not allowed under GAAP. o Require an outlay of cash in the future.
At Sugarland Ltd. prepaid costs are debited to expense when cash is paid and unearned revenues...
At Sugarland Ltd. prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Received $11,100 for services to be performed in the future. Paid $3,600 for casualty insurance protection for the year. Paid $5,700 for supplies Jan. 2 2 10 On January 31, it is determined that $3,500 of the service revenue has been earned and that there...
Accrued revenues: Multiple Choice At the end of one accounting period result in cash receipts in...
Accrued revenues: Multiple Choice At the end of one accounting period result in cash receipts in a future period. At the end of one accounting period often result in cash payments in the next period. Are also called unearned revenues. Are recorded at the end of an accounting period because cash has already been received for revenues earned. Are listed on the balance sheet as liabilities.
Required 1. Complete the paragraph explaining why unearned revenues are liabilities instead of revenues. In the...
Required 1. Complete the paragraph explaining why unearned revenues are liabilities instead of revenues. In the explanation, use the following actual example: Maclean's magazine collects cash from subscribers in advance and later delivers magazines to subscribers over a one-year period. Explain what happens to the unearned subscription revenue over the course of a year as Maclean's delivers magazines to subscribers. Into what account does the unearned subscription revenue go as Maclean's delivers magazines? 2. Give the journal entries that Maclean's...
Complete the paragraph to explain why unearned revenues are liabilities instead of revenues. In the explanation,...
Complete the paragraph to explain why unearned revenues are
liabilities instead of revenues. In the explanation, use the
following actual example: The New York Times , a national
newspaper, collects cash from subscribers in advance and later
provides news content via print newspapers and online access to
subscribers over a one-year period. Explain what happens to the
unearned revenue over the course of a year as The New York Times
delivers papers and online content to subscribers. Into what
account...
Steelar company received $ 9,000 as an advance payment from a customer on june 1. At...
Steelar company received $ 9,000 as an advance payment from a customer on june 1. At Sept 30, management indicates that 60% of the services have been rendered to date on the job. For the adjusting entry on Sept 30, which statement is correct? 1 Unearned revenue is debited for $5,400 2 Unearned revenue is credited for $ 5,400 3 Revenue earned is credited for $ 4,600 4 Revenue earned is debited for $ 4,600
Which of the following requires a credit? Multiple Choice Decreases in liabilities Decreases in stockholders' equity...
Which of the following requires a credit? Multiple Choice Decreases in liabilities Decreases in stockholders' equity Increases to assets Increases to liabilities 2. true or false Under the five-step revenue recognition model, a contract can be written, verbal, or implied. 3.When cash is received in advance of a performance obligation being satisfied, a(n) ______ called _________ is recorded.
Exercise 3-12A Adjusting for prepaids recorded as expenses and unearned revenues recorded as revenues LO P6...
Exercise 3-12A Adjusting for prepaids recorded as expenses and unearned revenues recorded as revenues LO P6 10 Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through dand the adjusting entries as of its December 31 period-end for iten e through g Hint a. Supplies are...
When the amount of revenue collected in advance decreases during an accounting period: Multiple Choice Accrual-basis...
When the amount of revenue collected in advance decreases during an accounting period: Multiple Choice Accrual-basis revenues exceed cash collections from customers. Accrual-basis net income exceeds cash-basis net income. Accrual-basis revenues are less than cash collections from customers. May exceed, equal or be less than cash payments to suppliers.
17. Accounts is created when a sale is made to a customer on account. Accounts is...
17. Accounts is created when a sale is made to a customer on account. Accounts is created when a company makes a purchase on account from their vendor. A) Payable; Receivable B) Receivable; Payable 18. The accounting equation is defined as: A) Assets = Liabilities + Common Stock + Retained Earnings B) Assets = Liabilities + Stockholders' Equity C) Assets - Liabilities + Common Stock + Revenues - Expenses - Dividends D) All of the above 19. U.S. GAAP requires...
Amounts received in advance from customers for future products or services: Multiple Choice o Are revenues. o Increase income. o Are liabilities. o Are not allowed under GAAP. o Require an outlay of cash in the future.
At Sugarland Ltd. prepaid costs are debited to expense when cash is paid and unearned revenues are credited to revenue when the cash is received. During January of the current year, the following transactions occurred. Received $11,100 for services to be performed in the future. Paid $3,600 for casualty insurance protection for the year. Paid $5,700 for supplies Jan. 2 2 10 On January 31, it is determined that $3,500 of the service revenue has been earned and that there...
Required 1. Complete the paragraph explaining why unearned revenues are liabilities instead of revenues. In the explanation, use the following actual example: Maclean's magazine collects cash from subscribers in advance and later delivers magazines to subscribers over a one-year period. Explain what happens to the unearned subscription revenue over the course of a year as Maclean's delivers magazines to subscribers. Into what account does the unearned subscription revenue go as Maclean's delivers magazines? 2. Give the journal entries that Maclean's...
Complete the paragraph to explain why unearned revenues are
liabilities instead of revenues. In the explanation, use the
following actual example: The New York Times , a national
newspaper, collects cash from subscribers in advance and later
provides news content via print newspapers and online access to
subscribers over a one-year period. Explain what happens to the
unearned revenue over the course of a year as The New York Times
delivers papers and online content to subscribers. Into what
account...
Exercise 3-12A Adjusting for prepaids recorded as expenses and unearned revenues recorded as revenues LO P6 10 Ricardo Construction began operations on December 1. In setting up its accounting procedures, the company decided to debit expense accounts when it prepays its expenses and to credit revenue accounts when customers pay for services in advance. Prepare journal entries for items a through dand the adjusting entries as of its December 31 period-end for iten e through g Hint a. Supplies are...
17. Accounts is created when a sale is made to a customer on account. Accounts is created when a company makes a purchase on account from their vendor. A) Payable; Receivable B) Receivable; Payable 18. The accounting equation is defined as: A) Assets = Liabilities + Common Stock + Retained Earnings B) Assets = Liabilities + Stockholders' Equity C) Assets - Liabilities + Common Stock + Revenues - Expenses - Dividends D) All of the above 19. U.S. GAAP requires...
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