Please explain what the correct answer is for both problems and why Question 4 0

Question

Please explain what the correct answer is for both problems and why

Question 4 0 1 poin Chap 7 E-34 It's Bead-i-ful is a magazine for creators of bead jewelry. The magazine currently has 6,900 subscribers who have paid $48 per year for the publication. During the week ending July 3, the magazine sold 120 annual subscriptions. The magazine is mailed on the first of each month. Required: (a) Prepare the journal entry to record the subscriptions for the week of July 3 (b) What journal entry should the magazine make on August 1? (c) On December 31, It's Bead-i-fulwent out of business. At that time, the magazine owed 4,100 magazines to its customers. Prepare the journa entry necessary to refund the subscriber's payments. After solving all parts to this problem: What is the net change in cash from the three journal entries? (i.e net the cash debits and credits) Increase $28,080 Increase $16,400 Decrease $10,640 Increase $10,640

Explanation / Answer

1 Subscription sold 5760 (120*48) Money to be refunded 48 for 12 magazine -16400 (4100*12/48) Decrease in cash -10640 2 Saalries expense 16400             FICA taxes payable 827             Federal income tax payable 2910             State income tax payable 416              Health insurance premium 485              Salaries payable 11762 So correct answer is D credit 11762

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---