Sales Less: Cancellation Sales, net of cancellations Year of expiration for subscriptions: 2020 240,000 2021 310,000 2022 250,000 2023 Total 800,000 2020 840,000 (40,000) 800,000 260,000 400,000 280,000 940,000 2021 1,000,000 (60,000) 940,000

Sales Less: Cancellation Sales, net of cancellations Year of expiration for subscriptions: 2020 240,000 2021 310,000 2022 250,000 2023 Total 800,000 2020 840,000 (40,000) 800,000 260,000 400,000 280,000 940,000 2021 1,000,000 (60,000) 940,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: During the month of June, Marigold Boutique recorded cash sales of $323,400 and credit sales of…

A: Journal entries are the basic method for recording financial transactions in the books of accounts.…

Q: A service provider has a 12-month agreement to provide a customer with services for which the custom…

A: Ex post facto: It is a legal term that means that something is being made binding retroactively in a…

Q: A firm uses the gross method to record sales made on credit. On June 1, 2020, it made sales of…

A: Sales discount = Sales x discount rate = $45,000 x 4% = $1,800

Q: Sadaf Oman Company's ledger showed an ending accounts receivable balance of RO 25,000 on April 30,…

A: Accounts receivable: It can be defined as the amount owed by the customers from the business for the…

Q: business like NetSolutions estimates customer refunds and allowances for each year’s sales that…

A: Customer refunds and allowances is a current liability as cash outflow will be required to settle…

Q: The following accounts and their balances appear in an unadjusted trial balance of Hydro Company as…

A: Calculation of Adjusted Balances at December 31, 2019 Cash Accounts Receivable Inventory…

Q: On May 1, 2025, Sunland Company enters into a contract to transfer a product to Charlie Company on…

A: As per IFRS 15 "Revenue from contracts with customers" The cash received in advance will be…

Q: At December 31, 2021, Wonder of the World Travel has an Accounts Receivable balance of $89,000.…

A: Under the allowance method for recording the uncollectible accounts receivables, a separate account…

Q: Grandview, Incorporated uses the allowance method. At December 31, 2021, the company's balance sheet…

A: Net accounts receivable represents the amount of money a company expects to collect from its…

Q: On December 31, 2020, Extreme Fitness has adjusted balances of $960,000 in Accounts Receivable and…

A: Account Receivables are the debtors to whom sales were made on account and the amount is yet to be…

Q: on december 1, 2019, pinewood company sold machinery to a customer for $2000. pinewood regularly…

A: Note Receivable: A written promise from a client or customer to pay a definite amount of money on a…

Q: On December 31, 2020, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and…

A: Transaction 1debit accounts receivable to reinstate the receivable account by the amount paid by the…

Q: Agrico Inc. accepted a 10-month, 13% (annual rate), $5,350 note from one of its customers on May 15,…

A: Face value of note = $5,350 Interest Rate = 13% Period (May 15, 2019 to December 31, 2019) = 7.5…

Q: Jennifer’s Landscaping Services signed a $400-per-month contract on November 1, 2019, toprovide…

A: Unearned income refers to money obtained from a client for work which has yet to be completed. It is…

Q: Required Information [The following information applies to the questions displayed below.] Evans…

A: Revenue is defined as any monetary payment received from a customer when an entity carries out its…

Q: True Tech Industries sells one year subscriptions to the Tri Net multi- use platform of Internet…

A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…

Q: On November 1, 2019, Gerakos Corporation sold software and a six-month technical support contract to…

A: Calculate the sales price of software:

Q: They gave the customer a discount for purchasing an AC unit as well as a service plan for 2 years,…

A: Revenue recognition is the process of identifying and recording revenue earned by a company in its…

Q: Milky Company's allowance for doubtful accounts was P1,000,000 at the end of 2019 and P900,000 at…

A: The allowance for doubtful account is established to record the estimated bad debt expense for the…

Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…

A: Sure, let's break down the transactions and accounting entries step by step. 1. **February 28:**…

Q: Lambda Corp. is preparing its financial statement for the current year ended December 31, 2019.…

A: Current liability includes: Accounts payable Outstanding salary Short-term debt Notes payable…

Q: A company has the following December 31 year-end unadjusted balances: Allowance for Sales Discounts,…

A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…

Q: Pandar Ltd prepares accounts to the end of February each year. The accrual for electricity brought…

A: As per the accrual concept income and expense should be recorded in the period for which it relates…

Q: Based on the foregoing information, determine the adjusted balances of the following as of March 31,…

A: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31,…

Q: Near the end of 20X0, JNT Enterprises completes services for a customer and sends an invoice for $…

A: There are two primary types of accounting basis methods: cash basis accounting and accrual basis…

Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The…

A: Trade payables refers to liabilities arising due to the primary activities of a entity such as…

Q: reenlaw Inc., a publishing company, is preparing its December 31, 2019, financial statements and…

A: 1). Actually, as per Matching Concept, even though we recieve Income in advance, we should record…

Q: 31st March 2021, an agreement was entered to buy goods at a fu ed?

A: Revenue recognition concept states that the specific conditions in which the revenue is recognized…

Q: Under the Revised Chart of Accounts (2019), the following are the expense accounts for: Utility…

Q: Russell Co. received a $480 utility bill for the current month's electricity. It is not due until…

A: Business transactions are defined as the dealings that take place between the business and its…

Q: ABC Company collected 30,000 on August 31 representing 6 months rent. The Comapany is using the…

A: Lets understand the basics. Journal entry is requirement is to make to record revenue and expense in…

Q: On December 31, 2021, what amount should be reported as unearned revenue?

A: Unearned revenues are those revenues which are received in advance by the business, but has not been…

Q: Kite Company sells magazine subscriptions of one to three-year periods. Cash receipts from…

A: The Magazine subscription revenue is calculated using the following formula:- Subcription Revenue…

Q: Take me to the text Thistle Theater Company sells annual subscriptions to its customers for plays to…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: Triton Publishing completed the following transactions during 2018. Journalize the transactions (…

A: Single Compound entry: It is the entry which involve more than one debit or credit entry and it is…

Q: Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The…

A: Bond Amortization Amortization of bond which are include with whether it is treated in the interest…

Q: Cardinal Company, a dealer in lawn equipment, accepted a 6 month note receivable from a customer on…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: On July 1, Mitchell Company receives 20 months of rent in advance, $41,360. Mitchell Company's…

A: July 1 to December 31 = 6 months Total rent paid in advance = $41,360

Question

APT Entertainment Company sells one and two-year memberships to the video-of-the-month service. Subscriptions are prepaid and credited to sales. An examination of sales data found the following (see image below).

On December 31, 2021, what amount should be reported as unearned subscription revenue?

Sales
Less: Cancellation
Sales, net of cancellations
Year of expiration for subscriptions:
2020
240,000
2021
310,000
2022
250,000
2023
Total
800,000
2020
840,000
(40,000)
800,000
260,000
400,000
280,000
940,000
2021
1,000,000
(60,000)
940,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

Prepare the adjusting entries for the following independent cases on December 31, 2021, unless the transaction provides another year-end. Miguel Catering Services is entitled to a 15% commission which is always received on the 5th day following the month of sale, based on its monthly sale of the products of Gourmet Corporation. Sales of Pollux of Gourmet's products for the last two months of 2021 are as follows: November, ₱375,000; December, ₱420,000. Texas Printing Shop bought a printing machine on March 31, 2021 for ₱180,000. On September 1, 2021, the firm bought additional two printing machines at ₱150,000 each. It is the policy of the firm to depreciate its fixed assets at an annual depreciation rate of 20% with salvage value of 10% of original cost. West Virginia Urban Cable estimates loss on accounts at 10% of Accounts Receivable. As of December 31, 2021, its total accounts receivable amounts to ₱320,000 and the balance of the allowance for doubtful accounts amounts to ₱25,000…
For the following independent cases, in the space provided, calculate the amount of revenue that should be recorded in 2019 under the revenue recognition principle (point of sale). O they collect dvane rent 1. ompany 18,000 19 a customer paid a uipment. The was delivered on January 16, 2020 and the balance was pad that date. equipment. On December $50,000 2. wards the eq 3. On December 29, 2019 Company C ships $15,000 worth of goods to a customer, F. O. B. destination. The goods arrive on January 3, 2020at the customer's office. The customer pays for the goods On February 1, 2020.
What amount of rental revenue should YELLOW record for 2021?
Tucker Ltd uses the gross method to record sales made on credit. On June 1, 2020, it made sales of $45,000 with terms 4/15, n/45. On June 12, 2020, It received full payment for the June 1 sale. Prepare the required journal entries. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.
Dell Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligations of the company as of March 31, 2021: Trade payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: • On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, • The balance also includes an advance payment of P20,000 made by a customer to Dell in • Additional information: resulting from a P50,000 advance payment for goods ordered by the company. anticipation of a purchase to be made by the customer in April 2021. A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35.000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
am. 251.
Gadubhai
Near the end of 20X0, Jamboree Enterprises completes services for a customer and sends an invoice for $500. As of year-end, no payment has been received. If Jamboree reports 20X0 revenue of $500, it must be using _______ basis accounting.
Consider the following situations for Shocker: 1. On November 28, 2021, Shocker receives a $1,800 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited. 2. On December 1, 2021, the company pays a local radio station $2,160 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited. 3. Employee salaries for the month of December totaling $6,200 will be paid on January 7, 2022. 4. On August 31, 2021, Shocker borrows $52,000 from a local bank. A note is signed with principal and 9% interest to be paid on August 31, 2022. Required: Record the necessary adjusting entries for Shocker at December 31, 2021. No adjusting entries were made during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field. Do not round intermediate calculations.) View transaction Usi Journal entry worksheet 2…
On March 1, Gonzalez Magazine Company receives annual subscriptions totaling $612,900. The first issue will be received by the subscriber one month after the money is received. Gonzalez Magazine Company's fiscal year ends December 31. Required: How much revenue would Gonzalez recognize from this amount for the current year?
shobha
Splish Brothers publishes a monthly music magazine, DiscOver. Subscriptions to the magazine cost $20 per year. During November 2021, Splish Brothers sells 16,800 subscriptions beginning with the December issue. Splish Brothers prepares financial statements quarterly and recognizes subscription revenue on magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue. Prepare the entry to record the receipt of the subscriptions. Prepare the entry to record the adjusting entry at December 31, 2021, to record the revenue to be recognized in December 2021.