A law firm collected $2100 in advance for work to be performed in three months. Which of the following general journal entries will the firm make to record this transaction?
A. Debit Cash, $2100; credit Unearned Legal Fees Revenue, $2100.
B. Debit Accounts Receivable, $2100; credit Unearned Legal Fees Revenue, $2100.
C. Debit Accounts Receivable, $2100; credit Legal Fees Revenue, $2100.
D. Debit Cash, $2100; credit Accounts Receivable, $2100.
E. Debit Legal Fees Revenue, $2100; credit Accounts Receivable, $2100.
Answer: A
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A company estimates that warranty expense will be 5% of sales. The company's sales for the current period are $206,000. The current period's entry to record the warranty expense is:
A. Debit Warranty Expense $10,300 credit Sales $10,300. B. Debit Estimated Warranty Liability $10,300 credit Warranty Expense $5380. C. Debit Warranty Expense $10,300 credit Estimated Warranty Liability $10,300. D. Debit Estimated Warranty Liability $10,300 credit Cash $10,300. E. No entry is recorded until the items are returned for warranty repairs.
Myers Landscaping Corporation performs lawn mowing services for its customers. Payments for the current month's services are expected to be received next month. How does this transaction affect the accounting equation of Myers Landscaping?
A) liabilities increase and equity decreases B) assets and equity increase C) assets and equity decrease D) liabilities and equity increase
The first stage in implementing empowerment is preparation.
Answer the following statement true (T) or false (F)
Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $75.00, ? = 0.35, and r = 0.05. An American call option with a strike price of $80 would be exercised early at what dividend yield?
A) 5.0% B) 7.0% C) 9.0% D) Never exercise early