Question : 31. In December, 2011, Quebecor Printing received magazine subscriptions for 2012 : 1236238

 

31. In December, 2011, Quebecor Printing received magazine subscriptions for 2012 from a customer, who paid $500 in cash. What would be the appropriate journal entry for this event? 
A. Debit Cash, $500; credit Subscription Revenue, $500.
B. Debit Cash, $500; credit Unearned Revenue, $500.
C. Debit Subscription Revenue, $200; credit Cash, $200.
D. No journal entry is necessary.

32. At times, businesses require advance payments from customers that will be applied to the purchase price when goods are delivered or services provided. These customer advances represent: 
A. Liabilities until the product or service is provided.
B. A component of stockholders’ equity.
C. Long-term assets until the product or service is provided.
D. Revenue upon receipt of the advance payment.

33. The sale of gift cards by a company is a direct example of: 
A. Unearned revenues.
B. Sales tax payable.
C. Current portion of long-term debt.
D. Deferred taxes.

34. When a company delivers a product or service for which a customer has previously paid, the company records the following: 
A. A debit to a revenue account and a credit to a liability account.
B. A debit to a revenue account and a credit to an asset account.
C. A debit to an asset account and a credit to a revenue account.
D. A debit to a liability account and a credit to a revenue account.

35. Sales taxes collected by a company on behalf of the state and local government are recorded by: 
A. A debit to an expense account.
B. A credit to a revenue account.
C. A debit to a revenue account.
D. A credit to a liability account.

36. When a company collects sales tax from a customer, the event is recorded by: 
A. A debit to Sales Tax Expense and a credit to Sales Tax Payable.
B. A debit to Cash and a credit to Sales Tax Payable.
C. A debit to Sales Tax Payable and a credit to Sales Tax Expense.
D. A debit to Sales Tax Payable and a credit to Cash.

37. Suppose you buy lunch for $8.39 that includes a 5% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much do they owe for sales tax? 
A. $8.39 for lunch and $0.42 for sales tax.
B. $8.39 for lunch and no sales tax.
C. $8.81 for lunch and $0.42 for sales tax.
D. $7.99 for lunch and $0.40 for sales tax.

38. Union Apparel has sales including sales taxes for the month of $551,200. If the sales tax rate is 6%, what are Union Apparel’s sales for the month? 
A. $500,000.
B. $518,128.
C. $520,000.
D. $551,200.

39. The current portion of long-term debt should be 
A. Reported as a current liability on the balance sheet.
B. Reported as a long-term liability on the balance sheet.
C. Combined with the rest of the long-term debt on the balance sheet.
D. Paid immediately.

40. Region Jet has a $50 million liability at December 31, 2012, of which $10 million is payable in 2013. In its December 31, 2012 balance sheet, the company reports the $50 million debt as 
A. A $50 million current liability on the balance sheet.
B. A $50 million long-term liability on the balance sheet.
C. A $10 million current liability and a $40 million long-term liability on the balance sheet.
D. A $40 million current liability and a $10 million long-term liability on the balance sheet.

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more