Two-thirds of the work has been completed

Assignment Help Financial Management
Reference no: EM131881951

A company received $18,000 from a customer on December 1, 20X1 for future work to be performed and recorded the receipt of cash and the liability to complete the work (credit to unearned revenue). As of the year ended December 31, 20X1, two-thirds of the work has been completed. Record the necessary adjusting journal entry.

DEBIT: Unearned Revenue for $6,000; CREDIT: Revenue for $6,000

DEBIT: Unearned Revenue for $12,000; CREDIT: Revenue for $12,000

DEBIT: Revenue for $6,000; CREDIT: Unearned Revenue for $6,000

DEBIT: Revenue for $12,000; CREDIT: Unearned Revenue for $12,000

Reference no: EM131881951

Questions Cloud

Employee wages that have been earned by the employees : At the end of the year, there is $9,000 worth of employee wages that have been earned by the employees,
What is the adjusting entry to record insurance expense : What is the adjusting entry to record insurance expense for the current year?
Water filtration system to assist in circuit board : Aerotron Electronics is considering the purchase of a water filtration system to assist in circuit board manufacturing
Journal entry to record the declaration of the dividends : Prepare the general journal entry to record the declaration of the dividends.
Two-thirds of the work has been completed : As of the year ended December 31, 20X1, two-thirds of the work has been completed. Record the necessary adjusting journal entry.
Prepare the general journal entry : A company sold $1,500 worth of goods and received immediate payment. Prepare the general journal entry?
What avicorp pretax cost of debt-effective annual return : What is Avicorp's pre-tax cost of debt Note: Compute the effective annual return. If Avicorp faces a 40 % tax rate, what is its after-tax cost of debt?
Which marketable securities to invest idle cash balances : What are some considerations for companies in choosing which marketable securities to invest idle cash balances?
What is the market return rm : Now suppose that Rf increased to 10%, and the slope of the SML remains constant. What is the market return Rm?

Reviews

Write a Review

Financial Management Questions & Answers

  Adoption of new product will reduce sale of existing product

If the adoption of a new product will reduce the sales of an existing product, then the projected sales on the pro forma statement should:

  Bonds in both firms are risk free-they are zero-coupon bonds

The bonds in both firms are risk free and they are zero-coupon bonds that will pay the holder principal and interest one year from today. The risk-free interest rate is 10%. An individual investor can also borrow or lend from a bank at the 10% risk-f..

  Calculation and interpretation of corporate cost of capital

How is a business’s cost of debt estimated? Its cost of equality? Explain the calculation and interpretation of the corporate cost of capital.

  Journal of economic perspective

Write a summary of the attached Article by Mishkin, Frederic S - Over the Cliff: From the Subprime to the Global Financial Crisis';

  Firm is considering investing in project with the cash flows

Suppose your firm is considering investing in a project with the cash flows shown below, Use the PI decision rule to evaluate this project.

  What would be the present value of the bond

Assume that the existing bond that provides annual coupon payments with a par value of $2000, what would be the present value of the bond?

  Total dollar return on this investment over the past year

Suppose you bought a 13 percent coupon bond one year ago for $1,050. The bond sells for $1,085 today. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?  What was your total nominal rate of return o..

  Indifferent to the two forms of payment

If the interest rate on the loan is 8% what final payment will the bank require you to make so that it is indifferent to the two forms of payment?

  Hypothetical stock is expected to pay a dividend

A hypothetical stock is expected to pay a dividend of $12 per share in two months, in six months and in ten months. The stock price is $600, and the risk-free rate of interest is 0.55% per annum with continuous compounding for all maturities.

  Find relevant cash flows with proposed marketing campaign

Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccessful in sharing this growt..

  Long-term borrowing to meet working capital needs

Compare and contrast the advantages and disadvantages of short- and long-term borrowing to meet working capital needs.

  What is the percentage change in price of bond dave

Bond Dave has a 9 percent coupon rate, makes semiannual payments, a 7 percent YTM, what is the percentage change in the price of Bond Dave?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd