Royce Company sells magazine subscriptions of one to three year periods. Cash receipts from subscribers are credited to magazine subscriptions collected in advance, and this account had a balance of P2,400,000 on December 31, 2020 before year end adjustment. Outstanding subscriptions on December 31, 2020 expire as follows: During 2021 During 2022 P 600,000 900,000 400,000 During 2023 On December 31, 2020, what amount should Royce report as unearned subscription revenue?

Royce Company sells magazine subscriptions of one to three year periods. Cash receipts from subscribers are credited to magazine subscriptions collected in advance, and this account had a balance of P2,400,000 on December 31, 2020 before year end adjustment. Outstanding subscriptions on December 31, 2020 expire as follows: During 2021 During 2022 P 600,000 900,000 400,000 During 2023 On December 31, 2020, what amount should Royce report as unearned subscription revenue?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3E: Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from...

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Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from First American Bank by issuing a 90-day, non-interest-bearing note. The bank discounted this note at 12% and remitted the difference to Clear Glass. Required: 1. Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year-end adjusting entry, and payment of the note at maturity. 2. Show how the preceding items Would be reported on the December 31, 2019, balance sheet. 3. Next Level What is Clear Glass Companys effective interest rate?