What is the amount of liability for advances from customers

Assignment Help Financial Accounting

Reference no: EM131202329

1- Consider the following information for YumYum Inc. as of December 31, 2015:

YumYum has a service contract with a maintenance company. The contract is for cleaning services at a rate of $3,000 per month. The maintenance company bills YumYum semiannually on October 1 and April 1. The contract commenced on October 1, 2015.

During 2015, YumYum received advances from customers for the first time. Total collections in 2015 were $100,000. At December 31, 2015, $30,000 of the advances had not been earned.

In 2015, YumYum had 50 employees. Each employee earned 10 days of vacation pay. The actual rate for 2005 was $300 per day. During 2015, 10 employees used all of their vacation days for 2015. At January 1, 2015, the Vacation Payable account had a balance of $10,000.

What is the amount of accrued liability for maintenance at December 31, 2015?

$3,000

$9,000

$12,000

$18,000

2-Consider the following information for YumYum Inc. as of December 31, 2015:

During 2015, YumYum received advances from customers for the first time. Total collections in 2015 were $100,000. At December 31, 2015, $30,000 of the advances had not been earned.

What is the amount of liability for advances from customers at December 31, 2015?

$30,000

$70,000

$100,000

$130,000

3-Consider the following information for YumYum Inc. as of December 31, 2015:

During 2015, YumYum received advances from customers for the first time. Total collections in 2015 were $100,000. At December 31, 2015, $30,000 of the advances had not been earned.

What is the amount of Vacation Payable at December 31, 2015?

debit to Vacation Payable

credit to Payroll Expense

credit to Cash

credit to Vacation Payable

Reference no: EM131202329

Questions Cloud

Weighted-average method in process costing system : The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 16,000 units, The ending work in process inventory is 100% complete with respect to materials and 80% comple..

Weighted-average method in its process costing system : Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 2,000 units that were 70% complete with respect to materials and 60% complete with respe..

Assume there are no banking holidays within period of time : Kelsey international declared a dividend on friday, November 13, that is payable on friday, december 4, to holders of record on monday., november 30. what is the latest date that you can purchase this stock if you wish to receive this dividend? assum..

Transaction indicate the amount of revenue or expenditure : A city engages in the transactions that follow. For each transaction indicate the amount of revenue or expenditure that it should report in 2014. Assume first that the main objective of the financial statements is to enable users to assess budgetary ..

What is the amount of liability for advances from customers : YumYum has a service contract with a maintenance company. The contract is for cleaning services at a rate of $3,000 per month. The maintenance company bills YumYum semiannually on October 1 and April 1. The contract commenced on October 1, 2015. What..

What should be the net carrying value of inventory : The journal entry in the buyer’s books to record the honoring by the seller of an account deemed uncollectible in a factoring agreement with recourse would include. Estimated cost of disposal 20,000 Normal profit margin 60,000 Current replacement cos..

Partnerships are flow-through entities-partner-partnership : Although partnerships are flow-through entities, partner-partnership, partner-partner, and partner-external party transactions may have tax implications. Discuss the tax implications of each type of transaction. Focus on how gains may be triggered in..

User Account

All Pages