Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed. The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

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Answer 1

Question

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

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During its first year, Yutsang Enterprises showed a $22 per-unit profit under absorption costing but would have reported a total profit of $20,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 58% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $240,000?

Wood Manufacturing uses a job-order costing system and a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Manufacturing overhead cost and direct labor hours were estimated at $120,000 and 50,000 hours, respectively, for the year. In August, Job #527 was completed at a cost of $6,200 in direct materials and $3,000 in direct labor. The labor rate is $7 per hour. By the end of the year, Wood had worked a total of 55,000 direct labor-hours and had incurred $130,500 in actual manufacturing overhead cost. If Job #527 contained 250 units, the unit product cost on the completed job cost sheet would be___. Answer

Answer 2

Question

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

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Answer 3

Question

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

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Answer 4

Question

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

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Answer 5

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

Answer 6

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

Answer 7

Chapter 3, Problem 3.32E

1.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a liability account.

Answer 8

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

Answer 9

2.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The adjustment entry assuming M records cash receipts of unearned revenue initially by crediting a revenue account.

Answer 10

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

Answer 11

3.

To determine

Concept Introduction: Deferred revenues are advanced receipts from customers for future service obligations. Deferred revenues are liabilities as the business receives the cash in advance and owes the customer goods or services later. When cash is received from a customer, the amount is credited to the service revenue account. Later if the goods or services are not provided to the customer, an adjustment entry for unearned revenue is passed.

The comparison of the ending balance of the T-accounts under both approaches, when the liabilities account is credited and when the service revenue account is credited.

Answer 12

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Answer 13

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Answer 14

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Answer 15

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