Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter, the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) a-3. Record the journal entry to show the effect of subscription fees received in advance and Subscription revenue earned during August 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 2 Record the cash collection of subscription fees received in advance. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Required Information
[The following information applies to the questions displayed below.]
Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in
advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and
received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive
the August newsletter; the other subscriptions began with the September newsletter. Table 6-4. Table 6-5 (Use
appropriate factor from the table provided.)
a-3. Record the journal entry to show the effect of subscription fees received in advance and Subscription revenue earned during
August 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.)
View transaction list
Journal entry worksheet
<
1
2
Record the cash collection of subscription fees received in advance.
Note: Enter debits before credits.
Event
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4. Table 6-5 (Use appropriate factor from the table provided.) a-3. Record the journal entry to show the effect of subscription fees received in advance and Subscription revenue earned during August 2019. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet < 1 2 Record the cash collection of subscription fees received in advance. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal
Required Information
[The following information applies to the questions displayed below.]
Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in
advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and
received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive
the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use
appropriate factor from the table provided.)
Required:
a-1. Use the horizontal model to record the effects of subscription fees received in advance during August 2019. Indicate the financial
statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
Assets
Balance Sheet
Assets
Liabilities
a-2. Use the horizontal model to record the effects of subscription revenue earned during August 2019. Indicate the financial
statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.)
Balance Sheet
+ Stockholders' Equity
+
Liabilities
Net Income
+ Stockholders' Equity +
+
H
Net Income
=
||=
Revenues
Revenues
Income Statement
Income Statement
Expenses
Expenses
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Required: a-1. Use the horizontal model to record the effects of subscription fees received in advance during August 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.) Assets Balance Sheet Assets Liabilities a-2. Use the horizontal model to record the effects of subscription revenue earned during August 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to Indicate a negative financial statement effect.) Balance Sheet + Stockholders' Equity + Liabilities Net Income + Stockholders' Equity + + H Net Income = ||= Revenues Revenues Income Statement Income Statement Expenses Expenses
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question

the journal entry is not correct there is no Unearned revenue on my side i also add the whole question

Required Information
[The following information applies to the questions displayed below.]
Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to
pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180
one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new
subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with
the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)
Evans Ltd. is now considering the possibility of offering a lifetime membership option to its subscribers. Under this proposal,
subscribers could receive the monthly newsletter throughout their lives by paying a flat fee of $540. The one-year
subscription rate of $45 would continue to apply to new and existing subscribers who choose to subscribe on an annual
basis. Assume that the average age of Evans Ltd.'s current subscribers is 38 and their average life expectancy is 78 years.
Evans Ltd.'s average interest rate on long-term debt is 12%.
c-1. Using the information given, calculate the present value of a lifetime membership for an average subscriber. (Round PV
factors to 4 decimal places and final answer to 2 decimal places.)
Present value
c-2. Would it be profitable for Evans Ltd. to sell lifetime subscriptions?
O NO
Yes
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) Evans Ltd. is now considering the possibility of offering a lifetime membership option to its subscribers. Under this proposal, subscribers could receive the monthly newsletter throughout their lives by paying a flat fee of $540. The one-year subscription rate of $45 would continue to apply to new and existing subscribers who choose to subscribe on an annual basis. Assume that the average age of Evans Ltd.'s current subscribers is 38 and their average life expectancy is 78 years. Evans Ltd.'s average interest rate on long-term debt is 12%. c-1. Using the information given, calculate the present value of a lifetime membership for an average subscriber. (Round PV factors to 4 decimal places and final answer to 2 decimal places.) Present value c-2. Would it be profitable for Evans Ltd. to sell lifetime subscriptions? O NO Yes
Required Information
[The following information applies to the questions displayed below.]
Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to
pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180
one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new
subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with
the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.)
b. Calculate the amount of subscription revenue earned by Evans Ltd. during the year ended December 31, 2019, for these
180 subscriptions sold in August 2019.
Revenue earned during August
Revenue earned from September-December
Total subscription revenue earned during 2019 from August 2019 sales
$
0
Transcribed Image Text:Required Information [The following information applies to the questions displayed below.] Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $45 in advance for a one-year subscription. During the month of August 2019, Evans Ltd. sold 180 one-year subscriptions and received payments in advance from all new subscribers. Only 72 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5 (Use appropriate factor from the table provided.) b. Calculate the amount of subscription revenue earned by Evans Ltd. during the year ended December 31, 2019, for these 180 subscriptions sold in August 2019. Revenue earned during August Revenue earned from September-December Total subscription revenue earned during 2019 from August 2019 sales $ 0
Solution
Bartleby Expert
SEE SOLUTION
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education