Voss Inc., an accounting firm, adjusts and closes its accounts each December 31. Below are two situations requiring adjusting entries. 1. During the current year, supplies were purchased for $1,125 cash. The inventory of supplies at the prior year-end was $225. At the current year-end, inventory remaining was $360. Prepare the adjusting entry required for each of the following separate cases.
a. Case A-the $1,125 was debited to Supplies Expense. What is the balance of Supplies at year-end? General Journal Ref. Account Name Dr. Cr. Case A Supplies 0 x 0 Supplies Expense 0 0 x Case A: Balance of Supplies at year-end: $ 0 b. Case B-the $1,125 was debited to Supplies. What is the balance of Supplies at year-end? General Journal Ref. Account Name Dr. Cr. Case B Supplies 0x 0 Supplies Expense X O 0x Case B: Balance of Supplies at year-end: $ 0 2. On September 1, the company collected $12,600 cash, which is for services to be performed over the next 12 months.
Prepare the adjusting entry required for each of the following separate cases. a. Case A-the $12,600 was credited to Service Revenue. What is the balance of Deferred Service Revenue at the year-end?
General Journal Ref. Account Name Case A Cash Service Revenue Dr. 0x 0 0 Ox Case A: Balance of Deferred Service Revenue at year-end: $ b. Case B—the $12,600 was credited to Deferred Service Revenue. What is the balance of Deferred Service Revenue at the year-end? General Journal Ref. Account Name - Dr. cr. Case B Service Revenue * 0* 0 Deferred Service Revex 0 0 x Case B: Balance of Deferred Service Revenue at year-end: $ O

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

Demand increases by less than supply increases. as a result, (a) equilibrium price will decline and equilibrium quantity will rise. (b) both equilibrium price and quantity will decline. (c) both equilibrium price and quantity will rise

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.