Question 14 (4 points) On September 1, 2018, Gold Magazine sold 400 one-year sub

Question

Question 14 (4 points) On September 1, 2018, Gold Magazine sold 400 one-year subscriptions for $90 each. The total amount received was credited to Deferred Revenue. What would be the required adjusting entry at December 31, 2018? Deferred Revenue 36,000 Service Revenue 36,000 Service Revenue 24,000 Deferred Revenue 24,000 Deferred Revenue 24,000 Service Revenue 24,000 Deferred Revenue 12,000 Service Revenue 12,000 Save Question 15 (4 points) otal assets of $70,000, total liabilities of $40,000, and common stock of $25,000 ds of $20.000. Retained

Explanation / Answer

Question 14 Annual Subscription $36,000 (90*400) Subscription from September1 to December 31(4 months) $12,000 (36000/12)*4 Revenue for the year $12,000 REQUIRED ADJUSTING ENTRY Date ACCOUNT TITLE DEBIT CREDIT .December31 Deferred revenue $12,000 Service Revenue $12,000 Answer: Deferred revenue $12,000 Service Revenue $12,000 Question 15 Beginning of the year: Total Assets $70,000 Total Liabilities $40,000 Total Shareholders equity $30,000 (70000-40000) Common Stock $25,000 Retained earnings $5,000 (30000-25000) During The Year Revenues $110,000 Expenses $55,000 Income for the year $55,000 (110000-55000) Statement of Retained Earnings Retained earning in the beginning of the year $5,000 Add: Income of the year $55,000 Less: Dividends $20,000 Retained earning at the end of the year $40,000 (5000+55000-20000) Answer: $40,000 Question 16 Assets $80,000 Liabilities and shareholders equity $80,000 Liabilities $36,000 Shareholders equity $44,000 (80000-36000) Retained earnings $12,000 Common Stock $32,000 (44000-12000) Balance in the common stock account $32,000

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