Emerald Motors is an automobile dealer. The controller consults with you about the type of accounting used for a special offer to its new car customers. Emerald has offered to provide at no charge to the customer the first four recommended service visits (i.e., at 3,000, 6,000, 9,000, and 12,000 miles). It is a virtual certainty that all customers will exercise their rights to the service, and the cost of the services can be accurately estimated. The controller reasons that the estimated cost should be accrued when the sale of an automobile is made so that all of the costs of the sale can be matched with the revenue. How would you respond to the controller?

Describe THREE (3) categories of e-commerce revenue models with ONE (1) real-life example for each model. Below are the guidelines of answer. DO NOT use guidelines below as the answer of question. If you not understand question, DO NOT answer, please comment below. Use your own answer and give your own experience example.

Answer:
First let me list the three :
1. Affiliate marketing <<explain this and give one real life example.
2. Online advertising<<explain this and give one real life example.
3. Transaction fees<<explain this and give one real life example.

Explanation:
1. Affiliate marketing enables you to earn revenue by marketing or offering another product for sale on your site. For example, you may reference a book you read and recommend your customers get a copy for themselves. You could also set up an affiliate account and place a direct link to the book on the Amazon site, which will pay you a percentage of the sale. If you decide to participate in affiliate marketing, you\'ll need to research which companies might provide you with a financial incentive for promoting their sites on your page.
When you\'re just starting out, the money you earn from affiliate marketing may be just a small, supplemental amount. However, as traffic to your site increases, you may enjoy more substantial income.
2. Online advertising is a very popular revenue model for e-commerce businesses. In this method, companies or organizations buy advertising space on your site, provide a designed ad or written message, and then pay you for promoting their messages. Media sites, such as magazines, newspapers, and television channels typically use online advertising.
Two common types of online advertising include pay-per-click and pay-per-view, which determine how much advertisers will pay for their advertisements. While some sites charge a set fee for placing an ad, most pay a set fee for each person who clicks on a link or views a page related to the advertiser. As traffic to your site grows and more people click on an advertiser\'s link or view a related page, you\'ll earn more advertising revenue.
3. Transaction fees are the charges a company pays for using their service. If you\'ve ever sold anything on eBay, you know there\'s a set price for posting a product for sale. Each time a transaction happens, you pay a small fee to eBay for marketing your product. Whether you charge a small fee for a company to list a transaction or for someone to view a video, transaction fees can be a sizable if the traffic to the website is substantial.
Examples of the firms that use these revenue models are:
1. TDC and Orange are using Affiliate marketing .
2. Coco Cola , AMEX , Mint are using Online advertising .
3. Google (e.g. AdWords and AdSense),Facebook,New York Times (Marketing) are using Transaction fees.

From a political-economy perspective, explain the emergence of publicly-funded, centrally-financed, universal healthcare systems in Europe and Canada.

Required information

[The following information applies to the questions displayed below.]

Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts.

In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company’s new merchandising activities. Its transactions for January through March follow:

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

1. The March 31 amount of computer supplies still available totals $2,095.
2. Prepaid Insurance coverage of $609 expired during this 3-month period.
3. Lyn Addie has not been paid for seven days of work at the rate of $215 per day.
4. Prepaid rent of $2,535 expired during this 3-month period.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,220.
6. Depreciation on the office equipment for January 1 through March 31 is $220.
7. The March 31 amount of merchandise inventory still available totals $644.

Part 1: Prepare journal entries to record each of the January through March transactions.

Part 2: Post the journal entries in part 1 to the accounts in the company’s general ledger. Note: Begin with the ledger’s post-closing adjusted balances as of December 31, 2019.

Part 3: Prepare 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger.

Part 4a) Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018.
(a) Use a single-step format. List all expenses without differentiating between selling expenses and general and administrative expenses

Part 4b) Prepare an income statement (from the adjusted trial balance in part 3) for the three months ended March 31, 2018.
(b) Use a multiple-step format that begins with gross sales (service revenues plus gross product sales) and includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses. Categorize the following accounts as selling expenses: Wages Expense, Mileage Expense, and Advertising Expense. Categorize the remaining expenses as general and administrative.

Part 5) Prepare a statement of owner’s equity (from the adjusted trial balance in part 3) for the three months ended March 31, 2020.

Part 6) Prepare a classified balance sheet (from the adjusted trial balance) as of March 31, 2020.

Find the lower fence for the following data set: 45, 34, 27, 78, 42, 64, 78

Find the upper fence for the following data set: 3, 19, 47, 18, 23, 34, 45, 27, 10, 7

What is a bond and how is it traded in financial markets?

8. At the beginning of 2014, Mask Ltd. had a Retained Earnings balance of $31,860. For the next three years, the firm reported the following net income (loss) and cash dividends declared and paid:

What would be the balance of Retained Earnings reported on the year-end balance sheet as of 12/31/2016?

-2.

Consider the following list of accounts:

• Service Revenue
• Deferred Revenue
• Inventory
• Prepaid Rent
• Common Stock
• Cost of Goods Sold
• Accumulated Depreciation-Equipment
• Rent Expense
• Retained Earnings
• Sales Revenue

How many of these accounts are reported on the income statement?

-3. LPM Ltd. uses units produced as its measure of activity. During August, the company budgeted for 48,900 units of output, but actually produced 46,700 units of output. The company uses the following revenue and cost formulas in its budgeting, where q is the number of units of output:

Revenue: $11.60q

Salaries: $31,050 + $2.45q

Supplies: $1.25q

Utilities: $0.60q

Insurance: $23,090

Miscellaneous expenses: $13,800 + $0.21q

The company reported the following actual results for August:

The spending variance in August for ‘Supplies’ is:

COMPREHENSIVE PROBLEM (Completing the Accounting Cycle – Chapters 1-3)

Murfee Delivery Service is a delivery service company that delivers anything to anyone anywhere. The company intends to stand out due to its strict confidentiality policy forbidding any disclosure of its customers’ personal information, for a profit or otherwise. The company also adds, as part of its robust confidentiality policy, it will never poke fun or humiliate its customers for the ridiculous, and sometimes even embarrassing, items they choose to have delivered.   Murfee Delivery Service began operations on December 1, 2019.

The following transactions occurred during the month of December:

Dec 1    Sold $22,000 of common stock to Eddie Murfee, the founder of the company.

Dec 1    Purchased a $9,000 delivery van by signing a note, agreeing to repay principle and interest in 2 years. The van was purchased from Eddie’s cousin’s boyfriend, Christopher Farleigh. The van was in great condition, especially considering that Christopher lived in the van down by the river for a short period of time while he was looking for an apartment.

Dec 1    Paid $600 in advance for a six-month general liability insurance policy from Ned Ryerson            Insurance Group.

Dec 1    Hired 2 delivery drivers, Clark Griswold and Van Wilder. Surprisingly, both drivers passed their    drug tests and background checks, and they were able to begin working immediately.

Dec 4    Purchased $750 of office supplies from Dunder Mifflin Office Supply Store on account.

Dec 12 Delivered a “Get Well” Deluxe Wellness Kit to Ferris Bueller and received $2,200 cash.

Dec 15 Delivered 243 cases of wine for the annual Catalina Wine Mixer in California. Willis Ferrill was    billed $3,300 on account for services rendered.

Dec 18 Paid employee salaries to Clark and Van totaling $2,400.

Dec 20 Received $10,600 payment for services from Owen Wilzen for delivering wedding gifts to all the couples of weddings he has attended (uninvited) since 2005.

Dec 22 Collected $2,200 in advance from Billy Muree to have Punxsutawney Phil delivered from his       home in Calabasas, California, to Punxsutawney, Pennsylvania, in time for a special appearance on February 2^nd.

Dec 25 Collected $3,300 from Willis Ferrill for the December 15^th delivery.

Dec 27 Received a bill for $150 from Frankenstein Electric Company for December utilities, due on         January 10.

Dec 29 Paid office rent, $2,800, to the property manager, Jim Halpert, for December and January Rent.

Dec 30 Paid $150 to Frankenstein Electric Company for the bill received on December 27^th.

Dec 31 Paid cash dividends of $2,500 to stockholders.

Requirements:

1. Record all necessary journal entries for the December transactions. Note: Not all transactions in December require a journal entry. If no entry is required, you may choose to simply omit the transaction, or you may choose to record the date of the transaction and write “NO ENTRY” in the space where the accounts & amounts would normally be written.
2. Post the journal entries to the T-Accounts.
3. Prepare an Unadjusted Trial Balance as of December 31, 2019.
4. Record the adjusting entries as of December 31, 2019. Additional information necessary for adjusting entries is below:
   1. Accrued Salaries for the last two weeks in December, $2,400, will be paid in January.
   2. The prepaid insurance policy began on December 1.
   3. Office Supplies on hand are $450.
   4. The Note Payable on December 1 has an interest rate of 7%. Interest and principle are due in 2 years.
   5. Weekly deliveries made to Liyam Hemmensworth in the month of December totaling $8,000 have not been invoiced.
5. Post the adjusting entries to the T-Accounts. Note: You will be adding to the T-accounts you created in Step 2.
6. Prepare an Adjusted Trial Balance as of December 31, 2019.
7. Prepare the income statement and statement of stockholders’ equity for the month ended December 31, 2019. Prepare the classified balance sheet as of December 31, 2019.
8. Record the closing entries as of December 31, 2019.
9. Post the closing entries to the T-Accounts. Note: You will be adding to the T-accounts you created in Step 2 and updated in Step 5.
10. Prepare a Post-Closing Trial Balance as of December 31, 2019.