Required information [The following information applies to the questions displayed below.] The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows: Revenues Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided. Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in 2022.
Required information [The following information applies to the questions displayed below.] The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows: Revenues Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided. Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
[The following information applies to the questions displayed below.]
The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows:
Revenues
Revenues from our magazine subscription services are deferred initially
and later recognized as revenue as subscription services are provided.
Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided
$224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in
2022.
Required:
1. Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter
any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)
Transaction
(a)
(b)
Cash
Assets
460,000,000
= Deferred Revenue
=
=
X Answer is not complete.
Liabilities
460,000,000
(224,000,000)
(236,000,000)
ΟΙΙΟΙΟ
+
+
+
Stockholders' Equity
Service Revenue
Service Revenue
N](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdeaf82d8-7c13-47e8-9a82-92ef28c88de0%2F264af10e-8593-4729-b8b4-1ae4716bf55b%2Fc6bn6iz_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows:
Revenues
Revenues from our magazine subscription services are deferred initially
and later recognized as revenue as subscription services are provided.
Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided
$224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in
2022.
Required:
1. Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter
any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)
Transaction
(a)
(b)
Cash
Assets
460,000,000
= Deferred Revenue
=
=
X Answer is not complete.
Liabilities
460,000,000
(224,000,000)
(236,000,000)
ΟΙΙΟΙΟ
+
+
+
Stockholders' Equity
Service Revenue
Service Revenue
N
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