Question 8 1 if a company is using accrual basis

This preview shows page 3 - 5 out of 6 pages.

QUESTION 8 1. If a company is using accrual basis accounting, when should it record revenue? When cash is received, even though services may be performed at a later date When services are performed, even though cash may be received at a later date Before services are performed When cash is received, 30 days after the completion of the services
5 points QUESTION 9 1. On January 1, 2017, the Accounts Receivable of Martha Company had a debit balance of $190,000. During January, the company provided services for $400,000 on account. The company collected $240,000 from its customers on account in January. What was the ending balance in the Accounts Receivable account at the end of January?
00 $400,0 00 5 points QUESTION 10 1. Justice Company purchased a machine for $15,000 two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the current book value of the machine.
5 points QUESTION 11 1. Jupiter Company signed a one-year $36,000 note payable at 8% interest on March 1, 2019. How much interest expense must be accrued on May 31, 2019? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number.)
5 points QUESTION 12 1. Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of each month, the company makes an adjusting entry to account for the tickets used during the month (ticket revenue.) On March 1, the Unearned Revenue account had a credit balance of $5,000. During March, Mercury sold 500 tickets at $40 each, and 450 tickets were used during the month. What is the balance in Unearned Revenue at the end of March? Credit balance of $7,000 Debit balance of $5,000 Credit balance of $5,000 Debit balance of $7,000
5 points

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture