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1. A company delivered $10,000 of goods to a customer that agreed to pay cash within...
1. A customer prepays a vendor for goods or services not yet delivered or provided. When she receives the customer’s check, the vendor’s accountant records that “deposit” as a liability, called “Unearned Revenue.” In the following month, the vendor delivers the goods (or completes the services). At that time, the vendor’s accountant removes the unearned revenue amount from the liability account and recognizes a sale in the vendor’s revenue account Required:Is this the correct accounting for the transaction? Please explain your answer, briefly....
A company that uses the perpetual inventory system sold goods to a customer for cash for $4.500 The cost of the goods sold was $1.000 Which of the wong journal entre correctly records this transaction? 4.600 4600 4.600 4.600 1,000 OA Merchandise Inventory Sales Revenue OB Accounts Receivable Cash Cost of Goods Sold Merchandise Inventory O c. Cash Sales Revenue Cost of Goods Sold Merchandise Inventory OD. Cost of Goods Sold Sales Revenue 1,000 4,600 1,000 4,600 1,000 4,600
Check all that apply! Knowledge Check 01 Assume a cash sale of $10,000 during a company's first month of operations and the related sales tax collected from the customer in the amount of $1,000 has not yet been remitted to the state. How will this transaction affect the company's financial statements prepared on the last day of that month? (Select all that apply.) Check All That Apply Deferred revenue of $1,000 will be reported as a liability on the belance...
8. A company sells $10,000 of goods to a customer who pays with a credit card. The Credit Card company charges a 2.5% service charge. No cash is received. Record the sale of goods.
A company performed services for a customer for cash. This transaction increased assets and: O A. decreased stockholders' equity. O B. increased expenses. O C. increased revenues. OD. increased liabilities.
5. On December 31, 2019, Woods Co. sold goods to a customer and agreed to accept a 3- year, $59,000 noninterest-bearing promissory note in return. The note requires the customer to make a single $59,000 payment on December 31, 2022 to settle its obligation. The relevant market rate of interest on the sale date is 6 %. How much sales revenue must Woods recognize from the December 31, 2019 transaction? $9,462 $59,000. $49,538. C. D. A. $0. В. On December...
Blue Company received a cash advance of $650 from a customer. As a result of this event, a. liabilities decreased by $650. b. assets and stockholders' equity increased by $650. c.) assets increased by $650. d. stockholders' equity increased by $650. Silver Company provided consulting services and billed the client $2,500. As a result of this event, a. assets remained unchanged. b. assets increased by $2,500. C. assets and stockholders' equity both increased by $2,500. C. stockholders' equity increased by...
2. Listed below are three reasons why a transaction would not yield a revenue. Match each of the reasons to the transaction it properly describes. Transaction ces Reason This transaction changed the form of an asset from a receivable to cash. Total assets were not increased (revenue was recognized when the services were originally provided) This transaction brought in cash (increased assets), but it also increased a liability by the same amount (no goods or services were provided to generate...
When our Business receives a Check or Cash from a Customer Before We provide any Goods or Services to the Customer, This is Called what Type of Accounting Transaction ? Deferred Revenue Depreciation Accrued Revenue Accrued Expense Deferred Expense Which One of the Following is False? Income Tax Computations are Performed after all Adjusting Entries have been made Closing Journal Entries Involve Revenues, Expenses and Dividends Deferrals are Transactions Where Cash is Exchanged Before Goods and Services are Provided Closing...
At the beginning of 2016, the Redd Company had the following balances in its accounts: Cash $16,800 Inventory 7,000 Land 2,600 Common stock 15,000 Retained earnings 11,400 During 2016, the company experienced the following events: 1. Purchased inventory that cost $11,800 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $860 were paid in cash. 2. Returned $750 of the inventory that it had purchased because the inventory was damaged...