Question 3: Parts A,B,C On January 1, 2012. Lexmark Company\'s Accounts receivab

Question

Question 3: Parts A,B,C

On January 1, 2012. Lexmark Company's Accounts receivable account had a debit balance of S10.000 During January, 2012. the company billed customers for services in the amount of $300,000 Also during January, the company collected $240,000 from its customers on account What was the balance in the Accounts receivable account at the end of January? $10,000 $70.000 $60,000 $250,000 Active Education sells tickets in advance for their weekly productions and records the proceeds as Unearned revenue At the end of each month, they make an adjusting entry to account for the tickets used during the month (Ticket revenue.) At March 1. the Unearned revenue account had a credit balance of $3,000 During March, they sold 300 tickets at $20 each, and 250 tickets were used during the month What is the balance in Unearned revenue at the end of March? Credit balance of $4,000 Debit balance of $4,000 Credit balance of $2,000 Debit balance of $2,000 Hank's Tax Planning Service has the following plant assets Communications equipment Cost, $4,800, useful life 8 years Furniture: Cost, $15,840: useful life 12 years Computer equipment Cost, $10,080: useful life 4 years Hank's monthly depreciation entry will include a: debit to depreciation expense of $210 credit to Accumulated Depreciation of $370. credit to depreciation expense of $370 debit to Accumulated Depreciation of $210.

Explanation / Answer

10,000 +300,000- 240,000= 70,000 Answer is B They had a net of 50 tickets sold but unused so you would add 50*20=1000 to unearned revenue. 4,000 credit balance Answer is A 4800/8= 600 15,840/12= 1320 10,080/4= 2520 So yearly depreciation is 600+1320+2520= 4,440 and monthly is 4,440/12= 370 Answer is B

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