Chips-n-Bits Company sells service contracts for personal computers. The service contracts are for a one-year, two-year, or three-year period. All sales are for cash and all receipts are credited to Unearned Service Contract Revenues. This account had a balance of $144,000 at December 31 . 2012 . before year-end adjustment. Service contract costs are charged as incurred to the Service Contract
Expense account, which had a balance of $36,000 at December 31 . 2012 . Service contracts still outstanding at December 31 . 2012 . expire as follows: During 2013 ............................................. $30,000 During 2014 ............................................. 45,000 During 2015 ............................................. 20,000 What amount should be reported as unearned service contract revenues in Chips-n-Bits December 31 . 2012 . balance sheet?
a. $49,000
b. $59,000
c. $95,000
d. $108,000
C
You might also like to view...
Many customers shop at Organic Foods because of the employees' extensive product knowledge. In a SWOT analysis, the employees' high levels of product knowledge are an example of the company's
A. strengths. B. threats. C. weaknesses. D. opportunities. E. intelligence.
In regard to the adoption of new technologies, the extent to which customers are uncertain about the consequences of an action is termed as:
A) systemic risk. B) pure risk. C) perceived risk. D) speculative risk.
A process in which an end product or service is examined using reverse engineering is referred to as ___________________________________
Fill in the blank(s) with correct word
Which of the following should be shown on a statement of cash flows under the financing activity section?
A) the purchase of a long-term investment in the common stock of another company B) the payment of cash to retire a long-term note C) the proceeds from the sale of a building D) the issuance of a long-term note to acquire land