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: Please answer asap. answer both 1 and 2 . The Appomatix Company sells fertilizer and pesticides to…

A: It will be recorded in the following way.

Q: Waterway Magazine sold 11, 760 annual subscriptions on August 1, 2025, for $21 each. Prepare…

A: Unearned revenue is revenue for which payment has already been made but revenue has not yet been…

Q: On August 1, Wilshire Company borrowed $150,000 from People's National Bank on a 1-year, 8% note.…

A: Note payable: Note payable is a form of promissory note which is provided by the lender to the…

Q: Today is December 30, 2019. In order to capture the attention of online shoppers, Cyber Retail…

A: Usually, Retail stores come up with schemes to increase its sales or clear its obsolete stock. In…

Q: Scarlet Company received an invoice for $67,000.00 that had payment terms of 2/5 n/30. If it made a…

A: Many companies provide their customers with trade credit which is the ability to receive the goods…

Q: Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a…

A: Notes Receivable :— It is one of the type of promissory note in which principal amount is receivable…

Q: When Lowes Home Improvements sells a new $223 air compressor to a customer, the sale is subDject to…

A: 223

Q: Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: On April 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Formula: Sales discount = Net sales x Discount rate

Q: Record journal entries for the following transactions of Wind Solutions. Jan. 1, 2018 Issued a…

A: Note receivable is a financial instrument which is held as a promise of a payment after a certain…

Q: Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold…

A: Financial transactions are initially recorded in the form of journal entries by the company.

Q: During December, Far West Services makes a $5,000 credit sale. The state sales tax rate is 6% and…

A: Debit what comes in and credit what goes out Debit the receiver and credit the giver Debit all the…

Q: On 1 December 2019 Airline de Afrique sold ten return airline tickets for R12 500 each to passengers…

A: Sales revenue: It is the revenue earned by a business on selling the goods or providing services to…

Q: On 10 July 2021, Pop Music sold CDs to retailers on account and recorded sales revenue of $700,000…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: During December, Far Eas Services makes a credit sale of $2,200 (before sales taxes). The state…

A: Journal entry is the first stage of the accounting process.Journal entry is used to record business…

Q: Kanika's Tutoring Service incurred the following transactions: 2021 May 10 Received Cash from a…

A: The accrued interest is the interest due to be paid but not paid yet. It is recorded as current…

Q: At December 31, 2019, Park Beauticians had 1,000 gift certificates outstanding, which had been sold…

A: Unearned Revenue: Unearned Revenue is also called deferred revenue. Unearned Revenue means money…

Q: You received invoices from Global Inc. dated Jan 20 for $2800, Jan 25 for $4200, and Feb 1…

A: Cash discounts: Traders provide a certain discounts to their customers when the invoice payment is…

Q: You received invoices from Global Inc. dated Jan 20 for $2800, Jan 25 for $4200, and Feb 1…

A: Credit terms of 3/10, n/30 indicates that a 3% discount will be received if the payment is made…

Q: Noel's Auto Repair Shop paid P3,586.20 invoice dated November 12,2014 on December 10 of the same…

A: Given: Invoice = P3,586.20 Invoice date = November 12,2014 Paid on = December 10, 2014 Stated…

Q: On January 1, Fashion Magazine recelved $16,680 from subscribers for the annual subscriptions that…

A: Unearned revenue is the type of revenue shown on the liability side of the balance sheet as it is…

Q: If a furniture retailer offers a financing plan on a 1,500 purchase requiring four equal quarterly…

A: Since the first payment of 400 was done on the purchase date itself.Hence, it need to remove it from…

Q: (Click the icon to view the transactions.) Journalize the transactions (explanations are not…

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

Q: Pacifica Fitness Ltd is marketing a 'fitness package' in which, for $430, it provides customers with…

A: Recording of the accounting entries of the receipt of the cash are as follows:

Q: On April 1, Online Travel issues $12.5 million of commercial paper with a maturity on December 31…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Chelsea's Boutique received an invoice dated August 30th for $1,875.00, with terms of 2/10, 1/15,…

A: The companies gives discount for cash payments but if the payment done within that period but not…

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: A plumbing supply company has a discount policy which states that, if a customer pays within 15 days…

A: Discount: Discount is the interest value included in the face value of discount note.

Q: Calculate the portion of the prepaid subscription expenses that should be expensed during the month…

A: Prepaid expenseA prepaid expense is an expense that has been paid for in advance but not yet…

Q: Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them…

A: Let us prepare T-account of supplier to find out how much the company owes the supplier Date…

Q: Conceptual Connection: For each situation, indicate when the company should recognize revenue on an…

A: The company should recognize of revenue in the month of December.

Q: On January 1, Fashion Magazine received $16,440 from subscribers for the annual subscriptions that…

A: Deferrals in accounting are basically adjustments made to the accounting books prior to the…

Q: Enter the following information into a manual journal with credits/debits:

A: The accrual basis of accounting is the method by which revenues and expenses are recognized when…

Q: The credit purchases of Fine Ventures for the month of June 2020 are stated below. You are required…

A: The purchase day book is prepared to record the details of suppliers from whom the goods were…

Q: Scarlet Company received an invoice for $80,000.00 that had payment terms of 3/5 n/30. If it made a…

A: Step 1: Since partial payment is made within the discount period, the discount is given to the…

Q: Prepare journal entries to record the following transactions which are independent of each other. 1.…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: When Lowes Home Improvements sells a new $223 air compressor to a customer, the sale is subject to…

A: Interest expense is a non-operating expense shown on the income statement. It represents interest…

Q: Today is December 30, 2019. In order to capture the attention of online shoppers, Cyber Retail…

A: Based on the above information, Cyber Retail made a sale of total $ 5,000,000 of merchandise during…

Q: Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them…

A: Initial purchase value=Units×Per unit=25×$30=$750

Q: Billing charges for Microsoft 365 Commercial licensing. When a customer purchases a subscription and…

A: The prorated charge is the charge for the partial use of a service that is calculated proportionally…

Q: Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine…

A: Unearned Income refers to the income that the company receives before it actually earning the same.…

Q: On January 1, 2024, Hodge Beanery received $9,100 from the Kennedy Company in exchange for a coffee…

A: Unearned income, often known as deferred revenue, is the term used to describe advance payments…

Q: Journalize the following transactiIons for the Scott Company. Assume 360 days per year. November 4:…

A: Solution: Date Account title Debit Credit 04-Nov Note Receivable 6500.00 Accounts…

Q: Outstanding Publishing completed the following transactions during 2024: i (Click the icon to view…

A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service…

Q: On August 5, John's furniture makes a purchase of $3200 for chairs from a wholesaler. The purchase…

A: This question deals with the concept of discount for early payment for purchase. There is various…

Q: Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Suppose that our business uses a monthly fiscal period. On March 1, 2020, we paid 6 months of rent,…

A: Correct option: 4.:

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

ABC has the following transactions during 2020:1. On March 1, 2020, ABC sold merchandise on account to Customer 1 for €7,750. ABCoffers a cash-discount of 2% if payment is made within 20 days of the sale. Otherwisethe full amount, net of returns and allowances, is due in 30 days.2. On March 10, 2020, Customer 1 returned merchandise worth €1,550 to ABC.1. 3.On March 15, 2020, Customer 1 paid for the merchandise.3. On April 1, 2020, ABC loaned €10,000 to XZ with a 1-year, 10% note.4. On November 1, 2020, received a €4,000, 6-month, 5% note in exchange for Customer’s2 outstanding accounts receivable.5. On December 16, 2020, sold merchandise to Customer 3, receiving a €4,500, 3-months,8% note.6. On December 31, 2020, the interest revenue accrued is recognized on all notesreceivable. a. Record the collection of note receivable as their mature in 2021.
Record journal entries for the following transactions of Wind Solutions.Jan. 1, 2018 Issued a $2,350,100 note to customer Solar Plex as terms of a merchandise sale. The merchandise’s cost to Wind Solutions is $1,002,650. Note contract terms included a 24-month maturity date, and a 2.1% annual interest rate.Dec. 31, 2018 Wind Solutions records interest accumulated for 2018.Dec. 31, 2019 Wind Solutions converts Solar Plex’s dishonored note into account receivable. This includes accumulated interest for the 24-month period.Mar. 8, 2020 Wind Solutions sells the outstanding debt from Solar Plex to a collection agency at 25% of the accounts receivable value
McNamara Industries completed the following transactions during 2024: (Click the icon to view the transactions.) Journalize the transactions. Explanations are not required. Round to the nearest dollar. (Record debits first, then credits. Exclude explanations from journal entries.) Nov. 1: Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Date Accounts Debit Credit Nov. 1 More info Nov. 1 Nov. 20 Dec. 31 Dec. 31 ← Made sales of $16,000. McNamara estimates that warranty expense is 5% of sales. (Record only the warranty expense.) Paid $500 to satisfy warranty claims. Estimated vacation benefits expense to be $3,500. McNamara expected to pay its employees a 4% bonus on net income after deducting the bonus. Net income for the year is $25,000. Prin Done X
Lamplight Plus sells lamps to consumers. The company contracts with a supplier who provides them with lamp fixtures. There is an agreement that Lamplight Plus is not required to provide cash payment immediately and instead will provide payment within thirty days of the invoice date. Additional information: • Lamplight purchases 25 light fixtures for $25 each on August 1, invoice date August 1, with no discount terms. Lamplight returns 5 light fixtures (receiving a credit amount for the total purchase price per fixture of $25 each) on August 3. • Lamplight purchases an additional 15 light fixtures for $10 each on August 19, invoice date August 19, with no discount terms. • Lamplight pays $130 toward its account on August 22. What amount does Lamplight Plus still owe to the supplier on August 30? What account is used to recognize this outstanding amount?
Help me selecting the right answer. Thank you
On July 10, 2020, Bridgeport Music sold CDs to retailers on account and recorded sales revenue of $764.000 (cost $588,280) Bridgeport grants the right to return CDs that do not sell in 3 months following delivery, Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Bridgeport and were granted credit of $78,200. Prepare Bridgeport's journal entries to record (a) the sale on July 10, 2020, and (b) $78,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Bridgeport prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.) Account Titles and Explanation No. € (b) Date (To record sales) (To record cost of goods sold) (To record sales) (To record cost of goods sold) (To record sales returns) (To record cost of goods returned) Debit…
A company makes a credit sale of $1,000 on June 13 according to the payment terms 5/10, n/30. On June 16, there is a return of $100. The buyer makes the payment for the remaining amount by utilizing the discount. What should be the amount to be paid? O A) $855 B) $900 C) $950 D) $810 E) $600
On July 10, 2020, Tamarisk Music sold CDs to retailers on account and recorded sales revenue of $657,000 (cost $538,740). Tamarisk grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Tamarisk and were granted credit of $84,200.Prepare Tamarisk’s journal entries to record (a) the sale on July 10, 2020, and (b) $84,200 of returns on October 11, 2020, and on October 31, 2020. Assume that Tamarisk prepares financial statement on October 31, 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) No. Date Account Titles and Explanation Debit Credit (a) enter an account title to record sales on July 10, 2017 enter a debit amount…
A credit sale of $4,000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted on April 28. What amount is received as payment in full on May 4? O a) $3,920 O b) $4,000 O c) $3,750 d) $3,675
Prepare the journal entries, with appropriate journal entry descriptions, for 2020, including any required year-end adjusting entries.The company prepares annual adjusting entries.
At its December 31 year-end, the company owes $700 of interest on a loan. That interest will not be paid until sometime in January of the next year. Note: Enter debits before credits. Transaction b. Interest expense Interest payable General Journal Debit Credit