Problem 1-24 (AICPA Adapted)Anette Video Company sells 1- and 2-year subscriptions forthe video-of-the-month business.Subscriptions are collected in advance and credited to sales.An analysis of the recorded sales activity revealed thefollowing:20202021SalesLess cancelations420,000500,00030,00020,000Neț sales400,000470,000Subscription expirations:2020202120222023120,000155,000125,000130,000200,000140,000400,000470,0001. On December 31, 2021, what amount should be reportedas unearned subscription revenue?a. 495,000b. 470,000c. 465,000d. 340,0002. What amount should be reported as subscription revenuefor 2021?a. 175,000b. 305,000c. 285,000d. 250,000

Unearned revenue is that amount which is received in advance for future period of time or for which…

Answered: Anette Video Company sells 1- and…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 69E: Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1,...

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Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?
Service Revenue Softball Magazine Company received advance payments of $75,000 from customers during 2019. At December 31, 2019, $20,000 of the advance payments still had not been earned. Required: After the adjustments are recorded and posted at December 31, 2019, calculate what the balances will be in the Unearned Magazine Revenue and Magazine Revenue accounts. Use the following information for Cornerstone Exercises 5-23 and 5-24: Bolton sold a customer service contract with a price of S37 000 to Sammys Wholesale Company. Bolton offered terms of 1/10, n/30 and expects Sammy to pay within the discount period.
Worksheet for Service Company Whitaker Consulting Company has prepared a trial balance on the following partially completed worksheet for the year ended December 31, 2019: Additional information: (a) On January 1, 2019, the company had paid 2 years rent in advance at 100 a month for office space, (b) the office equipment is being depreciated on a straight-line basis over a 10-year life, and no residua! value is expected, (c) interest of 150 has accrued on the note payable but has not been paid, and (d) the income tax rate is 30% on current income and will be paid in the first quarter of 2020. Required: 1. Complete the worksheet. 2. Prepare financial statements for 2019.
True Tech Industries sells one year subscriptions to the Tri Net multi- use platform of Internet based games. True Tech sells 1,000 subscriptions for $60 each to customers on October 1, 2021. Payment is made by the customers at the time of sale (i.e. on October 1, 2021. ) determine whether the seller should recognize revenue over a period of time or at a point in time.
Genaro Company sells 1 – and – 2 year subscription for its video of the month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following: 2020 2021 Sales 17,000,000 21,000,00 Less cancellations 1,000,000 1,000,000 Net sales 16,000,000 20,000,000 Subscription expirations: 2020 4,000,000 2021 7,000,000 5,000,000 2022 5,000,000 11,000,000 2023 4,000,000 On December 31, 2021, the balance for unearned subscription revenue is Group of answer choices A. 11,000,000 B. 20,000,000 C. 15,000,000 D. 4,000,000
Carrot Company sells one and two-year mail order subscriptions for video of the month business. Subscriptions are collected in advance and credited to a revenue account. An analysis of the recorded sales activity revealed the following: 2021 2022 Sales 780,000 950,000 Cancellations 10,000 40,000 Subscription expiration: 2021 130,000 2022 350,000 190,000 2023 290,000 400,000 2024 320,000 How much is the unearned subscription revenue as of December 31, 2022?
6. Patient Company sells subscriptions to a specialized directory that is published semiannually and shipped to subscribers on April 15 and October 15. Subscriptions received after the March 31 and September 30 cut-off dates are held for the next publication. Cash from subscribers is received evenly during the year and is credited to deferred revenues from subscriptions. Data relating to 2023 are as follows: Deferred revenue from subscriptions, 12/31/2022 P1, 500, 000 Cash receipts from subscribers 7, 200, 000 In its December 31, 2023 balance sheet, how much should patients report as deferred revenues from subscriptions?
Accounting Krusty Krab Inc. started business on January 1,2022. Record the required journal entry (F-I) or adjusting journal entry (J,K) for each of thefollowing events which happened during 2022. If no entry is required, please stateso and very briefly explain why. F) Customers paid $23,000 in advance payments for goods that will be deliveredlater. G) Equipment that cost $120,000 was purchased on October 1 for $20,000 cashplus a two-year, 10% note with a principal amount of $800,000. H) Wages totaling $42,000 were paid to employees during the year. I) The board of directors declared dividends of $10,000 in December 2022, to bepaid in January 2021. J) Recorded the insurance expense for the year. K) The depreciation expense for the equipment purchased (in item G) on October 1,2022, was calculated to be $1,000.
1. on 1st Jan 2019 a club had received prepaid subscription of GHS 560. during the year ended 31 december 2019, the club received subscription GHS8480. on 31 december 2019 subscription to the club amounted to GHS400. which amount should be shown for subscription in the income and expenditure account for 2019. 2. A company has sales of GHS1000. the company sells three types of goods. 60% of sales are of type A which is sold at a markup of 20%. Type B goods are sold at a margin of 30%. The cost of type B sold in the year was GHS154 and total gross profit for the year was GHS184. What was the cost of sales of type A?
Topic: Premium Liability Problem 2-21 Arianne Company, a grocery retailer, operates a customer loyalty program. The entity grants program members loyalty points when they spend a specified amount on groceries. Program members can redeem the points for further groceries. The points have no expiry date. During 2020, the sales amount to P7,000,000 based on stand-alone selling price. During the year, the entity granted 10,000 points. But management expected that only 80% or 8,000 points will be redeemed. The stand-alone selling price of each loyalty point is P100. On December 31, 2020, 4,800 points have been redeemed In 2021, management revised its expectations and now expected that 90% or 9,000 points will be redeemed altogether. During 2021, the entity redeemed 2,400 points. Questions: What amount should be reported as sales revenue including the revenue earned from points for 2020? What is the revenue earned from loyalty points for 2021?
un.3 Sindhill Ca Ltd publishes a monthly sports mugazine, Fishing Preview, Subseriptions to the magazine cost \$28 per year, During Noveriber 2022, Sardhilt selis 8,100 subscriptions for cash, beginning whth the December issue. Sandhall prepares financiat statements quarterly and recognizes subseription revenoe at the end of the quarter. The company uses the accounts Uncarned Subscription Revenue and Subscription Reverive. The cornpany has a December 31 year end. Prepare the adjusting entry at December 31, 2022, to record subscription revenue in December 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Dec. 31 Debit Credit
4. the unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine Subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15th of the month. A review of the subscription contracts revealed the following. Subscription Date No. of Quarterly Subscription No. of Semi-Annual Subscription Sep-01 100 100 Oct-01 200 100 Nov-01 300 150 a. Give the adjusting entry on December 31, 2018 b. Set up T accounts for Subscription Income (start with the balance of P390) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determined the adjusted balances that should be presented in the financial statement.

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