dvance and crec
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Indoor Camping Magazine Company sells 1- and 2-year subscriptions for magazines. Subscriptions are collected in
advance and credited to sales. An analysis of the recorded sales activity revealed the following:
2020
P420,000
20,000
P400,000
2021
Sales
Less: Cancellations
P500,000
30,000
P470,000
Net sales
Subscription expirations:
2020
P120,000
155,000
2021
2020
2021
2022
2023
130,000
125,000
200,000
140,000
P470,000
P400,000
Required:
1) On December 31, 2021, what amount should be reported as unearned subscription revenue?
2) What amount should be reported as subscription revenue for 2021?
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