Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to Unearned Service Revenues. This account had a balance of $1,800,000 at December 31, 2010 before year-end adjustment. Service contract costs are charged as incurred to the Service Contract Expense account, which had a balance of $450,000 at December 31, 2010. Service contracts still outstanding at December 31, 2010 expire as follows:During 2011 $380,000During 2012 570,000During 2013 350,000What amount should be reported as Unearned Service Revenues in Eaton's December 31, 2010 balance sheet? a. $1,350,000. b. $1,300,000. c. $850,000. d. $500,000.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Eaton Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Suppose the U. S. GDP growth rate is faster relative to other countries' GDP growth rates. U. S. imports will therefore increase faster than U. S. exports, and this will A. move the economy up along a stationary aggregate demand curve. B.
Answers (1)
Refer to the accompanying consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 12 percent. All figures are in billions of dollars.
Answers (1)
You know that the rental price of capital is $3,000, the rental price of land is $2,000, and the wage of labor is $100. The value of the marginal product produced by each factor is $30,000, $4,000, and $200, respectively.
Answers (1)
Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000.
Answers (1)
A company is deciding whether to purchase production equipment that can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision? A. The original purchase price of the current machinery B.
Answers (1)
New Questions in Business
A customer makes a small order, you deliver the goods, and he pays by check. The check clears. He makes another small order, you deliver, and he pays by check. The check clears again. The pattern goes on for several weeks.
Answers (1)
Ontario Resources, a natural energy supplier, borrowed $80.8 million cash on November 1, 2021, to fund a geological survey. The loan was made by Quebec Banque under a short-term financing arrangement.
Answers (1)
Where would you go to set up margins on a letter? A. Format Pages B. Page Layout C. View Pages D. Page Preview
Answers (1)
Morgan company does not ring up sales taxes separately on the cash register. total receipts for february amounted to $25,440. if the sales tax rate is 6%, what amount must be remitted to the state for february's sales taxes?
Answers (1)
The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $202,000. During 2016, the company had revenues of $402,000 and expenses of $351,000, and the company declared and paid dividends of $11,200.
Answers (1)