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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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