On September 1, 2020, Amazon sells 2,000 Amazon Prime annual subscriptions to 500 customers receiving $120 from its customers for each subscription. Required Task Prepare the appropriate journal entries that Amazon would record on January 1, 2020 and September 30, 2020 related to its subscription sales

Q: Genaro Company sells 1 – and – 2 year subscription for its video of the month business.…

A: AN ENTITY RECOGNISES REVENUE WHEN IT SATISFIES A PERFORMANCE OBLIGATION BY TRANSFERRING A PROMISED…

Q: Prepare the entry in November for the receipt of the subscriptions.

A: Whenever the Amount is Received for Subscriptions , it is treated as liability as its advance…

Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…

A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…

Q: The following sales and purchases are expected over the Five-month period from November 2019 to…

A: Cash budget of the business shows expected cash receipts and cash payments for the future period of…

Q: Dimples Company sells subscriptions to a specialized directory, which is issued semi-annually and…

A: The unearned subscription refers to the amount that is received from the customer for which services…

Q: Ayayai Corp. typically sells subscriptions on an annual basis and publishes 6 times a year. The…

A: Revenue: It is the Income generated by any organization from the regular course of business…

Q: During December 2018, Fashion Vixen Publishing sold 2,500 12-month annual magazıne subscriptions at…

A: There are two concepts that are usually used in accounting. These are the cash concept and the…

Q: Sheridan Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine…

A: From November to December = 1 month So till December 31, 2020; a subscription has been earned for 1…

Q: On May 1, 2020, Splish Company enters into a contract to transfer a product to Eric Company on…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Melrose Milk Delivery provides weekly gourmet milk delivery to the residents of Nicetown. Melrose…

A: Service companies that use the accrual method of accounting will periodically have to book unearned…

Q: Rea Company regularly buys sweaters from Litton Company and is allowed a trade discount of 20% and…

A: First trade discount = List price x 20% = P1,800,000 x 20% = P360,000

Q: Flores Company publishes a monthly sports magazine, Hunting Preview. Subscriptions to the magazine…

A: Here revenue is recognized at end of quarter.  That is on December 31. Cash received on October…

Q: Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with…

A: Definition:   Warranty expense: It is an estimated expense which arises when the company sells the…

Q: Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2020, for $18 each. Prepare Sport…

A: Liabilities Liabilities are an obligation of the business to pay to the creditors in future for the…

Q: On December 12, 2016, Pace Electronics received $24,000 from a customer toward a cash sale of…

A: Deferred Revenues  Deferred revenue is the amount received in advance and is not earned in the…

Q: na Corporation must determine the December 31, 2020 year-end accruals for advertising and rent…

A: Luna Corporation must determine the December 31, 2020 year-end accruals for advertising and rent…

Q: On December 12, 2018, Pace Electronics received $24,000 from a customer toward a cash sale of…

A: Deferred revenues: Collection of cash in advance to render service or to deliver goods in future is…

Q: How much revenue should Sansung recognize for the first 3 months of 2019?

A: Given information is: Sansung Company offers its customers a 3% volume discount if they purchase at…

Q: On October 1, Year 1, Sparky Co. Magazine sold one-year subscriptions in advance, collecting a total…

A: The advance received will be considered as Unearned revenue. After one month the revenue to be…

Q: On April 1, 2019 SOMETHING Company began offering a new product for sale under a one-year warranty.…

A: A liability account that reports the estimated amount that a company will have to spend to repairs…

Q: Amber gears sells gears to HTC Car Repair during 2018.It offers rebates of 2% on purchases up to…

A: Normal purchase made in parts during the year= $300,000  Purchases on March 25, 2018= $74,000 of…

Q: Blue Inc. has a year-end of June 30.  On December 1, 2020, the company signed a 10-month, 5% note…

A: Interest income for 7 months i.e. from Dec 1, 2020 to June 30 = 28,000 x 5% x 7/12…

Q: SM Food Company distributes to consumers coupons which may be presented (on or before a stated…

A: Liabilities are the dues and obligations which are being settled by the business. These can be short…

Q: On January 1, 2019, Spring Fashions Inc. enters into a contract with a southeast retail company to…

A: Given that: Number of dresses in the contract = 500 dresses Price per dress = $125 per dress

Q: Blue Devil Inc. sold goods to Black Mountain Corp. for $50,000 on March 1, 2020, accepting Black…

A: Interest: Interest is the amount of interest paid on the issue price of the notes by the issuer at…

Q: A company sold 8,000 units of its signature product for the calendar year ended December 31, 2020.…

A: The provision for warranty is created to record the estimated warranty Expenses for the period. The…

Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…

A: Service income should be recognized as revenue when it is earned. Any advance received against which…

Q: Sunland Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine…

A: In this numerical has covered the concept of Journal entry and adjusting entry. The Normal Journal…

Q: Skysong, Inc. typically sells subscriptions on an annual basis, and publishes 8 times a year. The…

A: Cash is an asset. Increase in cash should be debited and decrease in cash should be credited.…

Q: Olaf Inc. sells home improvement magazine subscriptions to customers.  On September 30, 2020, the…

A: Given that the company sold 13,500 subscriptions for $16 each. Total amount collected = 13,500 x $16…

Q: On September 1, 2019, Carolina Electronics Company has 1,150 Blu-ray players ready for sale. On…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: Sunlight Co. Started operations on January 1, 2018, selling home appliances on instalment basis. For…

A: What is meant by Gross Profit Ratio? Gross profit ratio shows the relationship of cost of goods sold…

Q: chapter 8

A: Required journal entry on March 31, 2021:

Q: Gansac Publishing Company signed a contract with an author to publish her book. The signing took…

A:

Q: During December 2020, Apartment Publishing sold 3,180 12-month annual magazine subscriptions at a…

A: The amount received in December should be considered as unearned revenue and classified under…

Q: Under the expense warranty approach, give the entries to reflect the above transactions (accrual…

A: Warranty liability is a liability account. Warranty expense is part of the operating expenses.

Q: Tannin Bus Co. sold 8,000 tickets on 1/5/2020 at $20 each for four-month period from 1/5/2020 to…

A: Given,  8,000 tickets  at $20 each sold on 1/5/2020   Total unearned revenue as on 1/5/2020 =…

Q: At December 31, 2020, Feel Company had 20,000 gift certificates outstanding, which had been sold to…

A: The cash basis of accounting says the firm has to record the transaction only when corresponding…

Q: Prepare journal entries to record the following transaction: Ikeo Inc. sold $100,000 of gift cards…

A: Introduction:- Basic information as follows under:- Journal entry means records a business…

Q: On January 1, 2020, Carly Fashions Inc. enters into a contract with a regional retail company to…

A: Standalone price of the blouse per piece=$20,000500=$40 per piece

Q: Blossom Equipment Company sells computers for $1,540 each and also gives each customer a 2-year…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses.…

A: Solution: Accrued liabilities related to advertising expense = P1,500 Accrued liabilities related to…

Q: In December 2020, Quebecor Printing received magazine subscriptions for 2021 from customers, who…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: On January 15, Ross Furniture, Inc., accepts a $5,000, 180-day, 10 percent note from a customer at…

A: Introduction: Journals: 1 ) Journals are book of prime records. 2 ) All the business transactions…

Q: Pythagoras Company must determine the December 31, 2021 year-end accruals for advertising and rent…

A: solution : calculation of accrued liability as on december 31 2021 Advertisement expenses…

Q: On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays…

A: The journal entries for Fulton Inc. are shown as below:     Working Notes: Computation of…

Q: Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense.…

A: Accrued Liabilities is nothing but an expense incurred by the entity but still has not been paid…

Q: During December 2020, Markowitz Publishing sold 4,500 12-month annual magazine subscriptions at a…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Anette Video Company sells 1- and 2-year subscriptions for the video-of-the-month business.…

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