117. At December 31, 2017, Sue's Boutique had 1,500 gift certificates outstanding, which had been sold...

Transcribed Image Text:

117. At December 31, 2017, Sue's Boutique had 1,500 gift certificates outstanding, which had been sold to customers during 2017 for $60 each. Sue's operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 1,000 outstanding gift certificates should be deferred at December 31, 2017? a. $0. b. $36,000. c. $54,000. d. $90,000. 86. Maso Company recorded journal entries for the issuance of common stock for $200,000, the payment of $65,000 on accounts payable, and the payment of salaries expense of $105,000. What net effect do these entries have on stockholders' equity? a. Increase of $200,000. b. Increase of $135,000. c. Increase of $95,000. d. increase of $30,000. 117. At December 31, 2017, Sue's Boutique had 1,500 gift certificates outstanding, which had been sold to customers during 2017 for $60 each. Sue's operates on a gross profit of 60% of its sales. What amount of revenue pertaining to the 1,000 outstanding gift certificates should be deferred at December 31, 2017? a. $0. b. $36,000. c. $54,000. d. $90,000. 86. Maso Company recorded journal entries for the issuance of common stock for $200,000, the payment of $65,000 on accounts payable, and the payment of salaries expense of $105,000. What net effect do these entries have on stockholders' equity? a. Increase of $200,000. b. Increase of $135,000. c. Increase of $95,000. d. increase of $30,000.

Answer rating: 100% (QA)

117Deferred revenue is amount of revenue which is received in advanc... View the full answer