Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value 15 180

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate what the revenue would be on the Income Statement for March Calculate what the deferred revenue would be on the Balance Sheet for March.
Netflix Subscription Scenario:
Assumptions
5000 Netflix subscriptions were sold in January, February, and March.
A Netflix subscription is $15.00 per month.
Each Subscriber paid the full year's subscription.
What would the Revenue for March be?
What would get recorded as Deferred Revenue for March?
Subscription Value Annual Subscription
per Month
Value
Month
January
February
March
Revenue Recognition
15
Total
180
# of Subscriptions
Sold
5000
5000
5000
15000
Monthly
Revenue
75,000
150,000
225,000
Deferred Revenue
825,000
1,575,000
2,400,000
Transcribed Image Text:Netflix Subscription Scenario: Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value Month January February March Revenue Recognition 15 Total 180 # of Subscriptions Sold 5000 5000 5000 15000 Monthly Revenue 75,000 150,000 225,000 Deferred Revenue 825,000 1,575,000 2,400,000
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