On April 1, Garcia Publishing Company received $18,180 from Otisco, Incorporated for 36-month subscriptions to several different magazines. The company credited Unearned Revenue for the amount received and the subscriptions started immediately. Assuming adjustments are only made at year-end, what is the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year?

Answers

Answer 1

Answer: To determine the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year for the unearned revenue, we need to consider the portion of the subscriptions that has been earned during that period.

Given that the subscriptions are for 36 months and adjustments are only made at year-end, we can assume that one-third (12 months) of the subscriptions have been earned by December 31 of the first year.

Adjusting Entry:
To recognize the earned portion of the unearned revenue, the adjusting entry would be as follows:

Date Account Debit Credit
------------------------------------------------------------------------------
December 31 Unearned Revenue $6,060
Magazine Revenue $6,060

Calculation:
$18,180 (initial credit) / 36 months = $505 (monthly revenue)
$505 (monthly revenue) * 12 months (earned period) = $6,060 (earned revenue)

Therefore, the adjusting entry that should be recorded by Garcia Publishing Company on December 31 of the first year is to debit Unearned Revenue for $6,060 and credit Magazine Revenue for the same amount. This entry recognizes the portion of the subscriptions that has been earned by the end of the first year.

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BC Corporation has 1,800 shares outstanding and earned $2,700 last year on assets of $2 million and equity of $1.5 million. What is the PE ratio if the stock is currently selling at $18 per share?

Answers

Answer:

PE ratio = 12

Explanation:

Data provided in the question:

Number of shares outstanding = 1,800

Earning on assets = $2,700

Now,

Earnings per share, EPS = [ Net income ] ÷ [ shares outstanding ]

= [ 2,700] ÷ [ 1,800 ]

= 1.5

Thus,

PE ratio = [ Price per share] ÷ [ Earnings per share]

= 18 ÷ 1.5

= 12

Hence,

PE ratio = 12

For the insured, insurance is fundamentally a form of:a. tax
b. premium
c. profit
d. security

Answers

D. Security

Without insurance you would have to pay a lot more money for things like medical bills and the cost to replace your house if it ever gets destroyed by a natural disaster.

It is also kind of a form of premium because in order to have insurance sometimes you have to pay some cash in advance before getting the help of the insurance provider.

It is not a form of profit or tax.

Michelle is investigating the financial statements of two companies. One company is in the maturity phase of the corporate life cycle, and the other company is in the decline phase. What financial activity might both companies be involved in?

Answers

Answer:

Purchasing treasury stock

Explanation:

Base on the scenario been described in the question, the type of financial activity both company are involved in is Purchasing treasury stock

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One drawback of mailed marketing surveys is

Answers

One drawback of mailed marketing surveys is limited response rates. Due to the physical nature of mailing, it takes time for surveys to reach recipients and for responses to be returned.

What does this lead to?

This delay may result in reduced engagement and interest from recipients, leading to lower participation rates compared to online surveys.

Additionally, mailed surveys can be perceived as less convenient and may be overlooked or discarded by recipients. As a consequence, the overall sample size and data quality may be affected, potentially limiting the survey's effectiveness in gathering comprehensive and actionable insights for marketing strategies.

Answers

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Answers

Answer:

(A) "So, the government decides to reduce the tariffs on imported raw materials."

(B) "It also introduces special economic zones where certain goods can be traded tax-free."

Explanation:

Liberal economic policies usually revolve around deregulation of many governmental policies, since advocates tend to prefer a market that is as free as possible – meaning, it is free of governmental influences. Liberal economy is also a form of capitalism, and thus they would support (A) and (B) most, since it reduces barriers for businesses to operate at a profit.

They would not support (C) and (D) since these two concepts are instead socialist economic policies.

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