Answer all the questions When does SurveyMonkey recognize revenue from its Platinum annual subscription plans?SurveyMonkey is an online survey company that allows its subscribers to customize and administer surveys. It recently made the news for raising another $250 million in equity funding("SurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.) (Note: SurveyMonkey is privately held. The founder says the company will not gopublic because the related costs of being a publicly-held organization are too high.)SurveyMonkey's basic services are free and include the ability to customize a survey containing a maximum 10 questions for up to 100 responses.Premium plans are also available through SurveyMonkey. Features of the Platinum SurveyMonkey plan include unlimited questions, unlimited number of responses, custom logos, andphone support. The Platinum plan costs $65 per month and is billed annually on the starting date of the plan for a total cost of $780.Questions1. Assume that Black Squirrel Design, Inc., signs up for the Platinum plan at SurveyMonkey on December 1, 2019. The customer pays the entire $780 on March 1, 2020.1. How and when will SurveyMonkey record this customer's payment?2. What asset and/or liability accounts are affected?3. What are they effects on SurveyMonkey's Financial Statements?2. Assume SurveyMonkey forgets to record the customer's payment what (if any) would be the effects on SurveyMonkey's Financial Statements and why?3. Continue the same example from Item #1. If SurveyMonkey has a December 31 year end, how much revenue related to the Platinum plan purchased by Black Squirrel Design willSurveyMonkey recognize at December 31, 2020?1. How much revenue from the Black Squirrel Design purchase will be recognized during 2020.

Financial Statements: Financial statements are considered as a summary of the events that took place…

. Assume that Black Squirrel Design, Inc., signs up for the Platinum plan at SurveyMonk 1. How and when will SurveyMonkey record this customer's payment? 2. What asset and/or liability accounts are affected? 3. What are they effects on SurveyMonkey's Financial Statements? . Assume SurveyMonkey forgets to record the customer's payment what (if any) would .Continue the same example from Item #1. If SurveyMonkey has a December 31 year e 2000

. Assume that Black Squirrel Design, Inc., signs up for the Platinum plan at SurveyMonk 1. How and when will SurveyMonkey record this customer's payment? 2. What asset and/or liability accounts are affected? 3. What are they effects on SurveyMonkey's Financial Statements? . Assume SurveyMonkey forgets to record the customer's payment what (if any) would .Continue the same example from Item #1. If SurveyMonkey has a December 31 year e 2000

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter21: Dynamic Capital Structures And Corporate Valuation

Section: Chapter Questions

Problem 3MC: David Lyons, CEO of Lyons Solar Technologies, is concerned about his firms level of debt financing....

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