Hook Company sells subscriptions to a specialized directory that is published semi-annually and shipped to subscribers on March 15 and September 15. Subscriptions received after the February 28 and August 30 cut-off dates are held for the next publication. Cash from subscribers is received evenly during the year and is credited to deferred revenue from subscriptions. Deferred revenue from subscriptions - January 1     2,250,000 Cash receipts from subscribers during the current year   10,800,000     What amount should be reported as deferred revenue from subscription on December 31?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
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Hook Company sells subscriptions to a specialized directory that is published semi-annually and shipped to subscribers on March 15 and September 15. Subscriptions received after the February 28 and August 30 cut-off dates are held for the next publication. Cash from subscribers is received evenly during the year and is credited to deferred revenue from subscriptions.

Deferred revenue from subscriptions - January 1

    2,250,000

Cash receipts from subscribers during the current year

  10,800,000

 

 


What amount should be reported as deferred revenue from subscription on December 31?

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