Problem 1-21 (AICPA Adapted) Anette Video Company sells 1 and 2-year subscriptions for the video-of-the-month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following: Sales Less cancelations Net sales Subscription expirations: 2021 2022 2023 2024 a. 495,000 b. 470,000 c. 465,000 d. 340,000 2021 420,000 20,000 400,000 120,000 155,000 125,000 a. 175,000 b. 305,000 c. 285,000 d. 250,000 400,000 1. On December 31, 2022, what amount should be reported as unearned subscription revenue? 2022 500,000 30,000 470,000 130,000 200,000 140,000 470,000 2. What amount should be reported as subscription revenue for 2022?

Problem 1-21 (AICPA Adapted) Anette Video Company sells 1 and 2-year subscriptions for the video-of-the-month business. Subscriptions are collected in advance and credited to sales. An analysis of the recorded sales activity revealed the following: Sales Less cancelations Net sales Subscription expirations: 2021 2022 2023 2024 a. 495,000 b. 470,000 c. 465,000 d. 340,000 2021 420,000 20,000 400,000 120,000 155,000 125,000 a. 175,000 b. 305,000 c. 285,000 d. 250,000 400,000 1. On December 31, 2022, what amount should be reported as unearned subscription revenue? 2022 500,000 30,000 470,000 130,000 200,000 140,000 470,000 2. What amount should be reported as subscription revenue for 2022?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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