14) Angela Company sells office equipment service contracts agreeing to service equipment for a two-year period....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
14) Angela Company sells office equipment service contracts agreeing to service equipment for a two-year period. Cash receipts from contracts are credited to unearned service revenue and service contract costs are charged to service contract expense as incurred. Revenue from service contract is recognized as eamed over the term of the contracts. The entity provided the following information for the year ended December 31, 2019: Unearned service revenue - January 1 Cash receipts from service contract sold Service revenue recognized Service contract expense 600,000 900,000 800,000 500,000 What amount should be reported as unearned service revenue on December 31, 2019? C. 300,000 D. 700,000 A. 100,000 B. 500,000 14) Angela Company sells office equipment service contracts agreeing to service equipment for a two-year period. Cash receipts from contracts are credited to unearned service revenue and service contract costs are charged to service contract expense as incurred. Revenue from service contract is recognized as eamed over the term of the contracts. The entity provided the following information for the year ended December 31, 2019: Unearned service revenue - January 1 Cash receipts from service contract sold Service revenue recognized Service contract expense 600,000 900,000 800,000 500,000 What amount should be reported as unearned service revenue on December 31, 2019? C. 300,000 D. 700,000 A. 100,000 B. 500,000
Expert Answer:
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
For the years ended December 31 2019 2018 Revenue $ 567,908 $ 508,201 Operating earnings $ 58,370 $ 46,263 Net earnings $ 24,159 $ 50,943 Basic earnings per common share $ 0.63 $ 1.32 As at December...
-
For the years ended December 31 2019 2018 Revenue $ 567,908 $ 508,201 Operating earnings $ 58,370 $ 46,263 Net earnings $ 24,159 $ 50,943 Basic earnings per common share $ 0.63 $ 1.32 As at December...
-
What amount should be recorded as an asset and a liability for capital leases on the books of the lessee?
-
Use the formula A= P(1+) to find the total amount of money accumulated for an initial investment $600 at 8% compounded semiannually after 7 years. Round to the nearest cent (in dollars and cents)....
-
Describe how consistency and uniformity promote comparability.
-
If shown structures of monomers that might polymerize, what would you look for to determine if the type of polymerization would be addition?
-
In Example 22.2, derive the mass balances for the cell mass, penicillin, and substrate, and the overall mass balance. Data From Example 22.2:- Data From Exercise 22.2:- For the penicillin reactor in...
-
Table contains data for the installation of new equipment in a manufacturing process at Excello Corporation. Your company is responsible for the installation project. Indirect costs are $15,000 per...
-
A machine is 77% efficient and loses 1.1 horsepower through its drivetrain. Determine the horsepower input of the machine. Round the answer to 1 decimal place.
-
Details of a company's insurance policy are shown below: Premium for year ended 31 March 2008 paid April 2007 Premium for year ending 31 March 2009 paid April 2008 $25,920 $28,800 What figures should...
-
Is the quantity a vector or a scalar? Compute it. -, where = 47-67-8 and = -7 Indicate whether the quantity is a vector or a scalar using the drop-down menu. The quantity is a scalar Use first answer...
-
List and briefly explain at least 10 different pricing strategies.
-
Define both the break-even quantity and the break-even revenue and provide their formulas.
-
List and briefly explain the different sources from which a firm can get its employees.
-
How could the non-cash cost such as the depreciation be considered if you want to find out the break-even point? Explain that with a numerical example.
-
List and briefly explain: (a) employees' required benefits, (b) employees' optional benefits.
-
v Tools of Monetary Policy On the table below indicate how the FED could use each of the three monetary policy tools to pursue an expansionary policy and a contractionary policy. Monetary Policy Open...
-
If M = 7, s = 2, and X = 9.5, what is z?
-
Andrea Herbert, the vice president of sales for Tropical Pools and Spas, wants the companys credit department to be less restrictive in granting credit. How can we sell anything when you guys wont...
-
Megan Haak and Kathy Quandt borrowed $15,000 on a 7-month, 8% note from Golden State Bank to open their business, MKs Coffee House. The money was borrowed on June 1, 2012, and the note matures...
-
Worthmore Bank and Trust is considering giving Madsen Company a loan. Before doing so, it decides that further discussions with Madsens accountant may be desirable. One area of particular concern is...
-
The trial balance of Shanghai Co. on 31 March 20X7 is given below. The following information is also relevant: 1. Closing inventory is valued at 133m. 2. Electricity accrued is estimated to be 5m. 3....
-
The trial balance for Oslo Co. on 31 July 20X7 is given below. The following additional information is relevant. 1. Closing inventory is valued at 180,000. 2. An allowance for doubtful debts is to be...
-
Find the heat transfer rate \(\mathrm{q}_{\mathrm{w}}\) at \(\mathrm{x}=10 \mathrm{~cm}\) and \(100 \mathrm{~cm}\) for the flat plate given in Problem 7.31. Problem 7.31 A flat plate of \(4...
Study smarter with the SolutionInn App