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pls help 7) The well-known Danish toy company Lego Group reported its...

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Accounting

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7) The well-known Danish toy company Lego Group reported its first loss in 1998 since the 1930s. While its bright plastic bricks are famous around the globe, Lego is rapidly losing its market share to the computer and video games. The company's President said, "The Lego Group is not in critical condition, but action is needed. We need to acknowledge that growth and innovation are not enough. We also have to be a profitable business." Discuss the meaning of profitability with respect to President's announcement. What other goal(s) must a business achieve? Why is the goal of profitability important to Lego's President? How is accounting profitability measured? (15 pts.) 8) "On December 1, ABC company received $10,000 from a customer for consulting services to be given for the following two months." Considering the transaction given above, the accountant of ABC company made the following journal entry on December 31: --- Uneared Service Revenue $10,000 Service Revenue $10,000 * Is the journal entry recorded on December 31 accurate? If not, what is the correct entry? Explain your answer based on the basic accounting concepts/assumptions. (15 pts.)

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