Deferred revenue: It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed. To Journalize: the entry that Company S would make at the time it sells its subscription.

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Answer 1

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

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Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600.Self-Employment tax =

Question 2 U. Richards does not keep his books on the double entry system. His bank summary amount for 2010 is as follows: Balance 1.1.2010 1890 Receipts from $44656 debtors Creditors Loan from U. Miller $2.000 Rates Rent Drawings Cash withdrawn from bank $540 0 Payment to Trade $316 95 2750 1316 3095 1642 Sundry Expense Records of cash paid were sundry $122, trade creditors $642. Cash sales amounted to cash drawings were $5289. The following information is also available: 31.12.201 31.12.2 0 011 Cash in hand $48 $93 Trade creditors $4896 $5091 Accounts Receivables 60 $71 13 32 Rent Owing $250 Rates in Advance $282 $312 Motor van (at valuation) 2800 2400 Stock 11163 13021 Required: A. Statement of Affairs. (to find opening capital as at 31.12.2010) B. Cash Account & Bank Account. C. Accounts Receivables & Accounts Payables Control A/Cs. D. Income Statement for the year ended 31 December 2011.

2: Martin Hughes earns net self-employment income of $157,100. He works a second job from which he receives FICA taxable earnings of $127,600. Self-Employment tax = $ 6,440.70 3: Elisa Grant earns net self-employment income of $198,000. She works a second job from which she receives FICA taxable earnings of $100,400. Self-Employment tax = $ 30,294.00

Answer 2

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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Answer 3

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Expert Solution & Answer

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Answer 5

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 6

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

Answer 7

Chapter 8, Problem 12RQ

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make at the time it sells its subscription.

Answer 8

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 9

To determine

Deferred revenue:

It is an advance made by the buyer before receiving the product or service. In upcoming period seller will have an obligation to provide goods or perform the services to the buyer for the payment already received. It is a current liability until the goods are delivered or the service is performed.

To Journalize: the entry that Company S would make each time it distributes a magazine.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

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Answer 13

Ch. 8 - Prob. 1RQ Ch. 8 - Prob. 2RQ Ch. 8 - Prob. 3RQ Ch. 8 - Provide examples of current liabilities in the...Ch. 8 - Prob. 5RQ Ch. 8 - Prob. 6RQ Ch. 8 - How does commercial paper differ from a normal...Ch. 8 - Prob. 8RQ Ch. 8 - Prob. 9RQ Ch. 8 - Prob. 10RQ

Solution Summary: The author explains that deferred revenue is an advance made by the buyer before receiving the product or service. It is a current liability until the goods are delivered or the service is performed.

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Chapter 8 Solutions