Answered: The Eglington Newspaper sold 4,000 of…

The Eglington Newspaper sold 4,000 of annual subscriptions at $125 each on September 1. How much unearned revenue will exist as of December 31? Select one: $333,333. $166,667. $500,000. $0.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter21: Supply Chains And Working Capital Management

Section: Chapter Questions

Problem 6P

See similar textbooks

Related questions

Q: National Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent…

A: Sales = P 900000 35% pay on 10th day and 65% pay on 45th day. Let's find the days sales outstanding.

Q: Current Liabilities Bon Nebo Co. sold 14,000 annual subscriptions of Bjorn for $46 during December…

A: Liabilities: A liability is a legal obligation to pay other entities as a result of past…

Q: Bon Nebo Co. sold 12,500 annual subscriptions of Bjorn for $45 during December 20Y5. These new…

A: Current liabilities: Current liabilities are a company's short-term financial obligations that are…

Q: The Eglington Newspaper sold 4,000 of annual subscriptions September 1. How much unearned revenue…

A: Unearned revenue is income received by a person or business in exchange for a service or product…

Q: Bon Nebo Co. sold 25,000 annual subscriptions of Magazine 20XX for $85 during Decem-ber 20Y8. These…

A: Current Liabilities These are those liabilities which a company is obligated to pay within a year.…

Q: Ansel Accounting Firm rents an office space for $250,000 per year which is due at the beginning of…

A: Beginning of period payments Rent Payments = 250,000 per year Time Period = 5 years Hurdle Rate =…

Q: Swifty Corporation typically sells subscriptions on an annual basis, and publishes 8 times a year.…

A: Amount received from subscriptions = 45,600*$12 Amount received from subscriptions = $547,200

Q: A Company sold 80,000 sold reversible shirts under a new sales promotional program during the year.…

A: The estimated expenses are the expenses that are based on current sales but are not sure to be…

Q: Seacost Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and…

A: Under the Accrual Basis of Accounting, revenue is accounted for when it is earned, and expense is…

Q: On October 1, Year 1, Sparky Co. Magazine sold one-year subscriptions in advance, collecting a total…

A: The advance received will be considered as Unearned revenue. After one month the revenue to be…

Q: Vista newspapers sold 4,000 of annual subscriptions at P125 each on September 1. How much unearned…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: Mutiple choice: A hospitality company is the maker of an $18,000 note to be paid in quarterly…

A: Long term liabilities are liabilities which are expected to be paid off in the longer duration,…

Q: Reality Corporation borrowed $175,000 on April 1. The note requires interest at 12% and principal to…

A: Interest that should be recognised is interest expense for the period.That is interest accrued for…

Q: On January 1, Portillo, Incorporated lends a corporate customer $96,000 at 5% interest. The amount…

A: Given, Amount given = $ 96,000 Interest = 5% p.a. Amount given on = January 1 Amount of…

Q: 17. Zoom has a DSO of 35 days, and its annual sales are $6,500,000. What is its accounts receivable…

A: DSO = 35 days Sales = $6,500,000 Number of days in a year = 365

Q: Lacoste Inc. receives a 90 day 6% note receivable from a client for the repair of 5 sets of…

A: Note receivable amount (P) = P 25,000 Period = 90 days Period from 31 October to 31 December (D) =…

Q: Within 10 days following a sale, a company receives payment of a $20,000 account receivable with…

A: Sales discount = Accounts receivable x rate of discount

Q: On December 1, Victoria Company signed a 90-day, 4% note payable, with a face value of $12,600. What…

A: Given, Face value of the note = 12,600 Interest rate = 4%

Q: McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,537, 000; 40% of…

A: The day's sales outstanding refers to the number of days for which credit will be provided to all…

Q: On October 1, a company borrowed $200,000 on a two-year, 12% note, with interest and principal to be…

A: Given: Principal = $200,000 Interest rate = 12% From Oct 1 to Dec 31 = 3 months

Q: Lux Co. sells on terms 3/10, net 30. Total sales for the year are P900,000. Thirty-five percent of…

A: Sales per day = Total sales / 360 Sales per day = P900,000 / 360 Sales per day = P2,500 Days' sales…

Q: TJ made a loan of $16,000 to one of the company's employees on April 1, year 1. The one year note…

A: The answer is option (A.) [i.e, $720] Refer Step 2 for Explanation.

Q: For the month of November Parry Sound Sales Ltd. recorded $326,000 in sales, 45% of which were on…

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

Q: Baxley Brothers has a DSO of 23 days, and its annual salesare $3,650,000. What is its accounts…

A: Day sales outstanding=23 daysAnnual sales=$3,650,000Days per year=365 days

Q: nider Industries sells on terms of 2/10, net 25. Total sales for the year are $600,000. Thirty…

A: Days Sales Outstanding means the number of days taken by the firm to collect the payment from their…

Q: ROTAVAIT 2. January 1-You have a beginning balance in inventory of $100,000 (10 items). During the…

A: Introduction: In Every type of Accounts the left side of T Account is the debit side and the right…

Q: Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of…

A: Introduction: An income statement is a critical financial record for every company. It illustrates…

Q: On February 1, 2021, Miter Corp. lends cash and accepts a $1,000 note receivable that offers 12%…

A: In accounting, interest revenue refers to the income earned by an entity from interest-bearing…

Q: Ranto In een pto on ytof heet yerwth200 lan Fty p e e ee o phand larly 20% of puh Febury wing date…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Goods totaling P50,000 were purchased February 2 with terms 2/10, n/30. Returns of p10,000 were made…

A: Here the terms 2/10, n/30 means 2% cash discount will be provided if payment is made with in 10 days…

Q: An invoice for $6200.00, dated May 28, 3/10, 1/20, n/60, was received on May 30. What payment must…

Q: Bon Nebo Co. sold 19,000 annual subscriptions of Magazine 20XX for $60 during December 20Y8. These…

Q: On June 1, Davis Inc. issued an $84,000, 5%, 120-day note payable to Garcia Company. Assume that the…

A: Solution: Days in current year = June 30 - June 1 = 29 days Days in following year = 120 - 29 = 91…

Q: Rapoo Inc. sells gift certificates. One-half of the gift certificates outstanding on January 1…

A: Unearned revenue from gift card on 1 JANUARY 1,80,000 Closing balance of unearned…

Q: ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is…

A: Profit means the difference between the selling price and cost price. Profit on cost = Profit * 100/…

Q: 1. The VAT payable for January is? 2. The VAT payable for February is 3. The VAT payable for March…

A: Deducting or reducing tax credit from tax collected and levied during the payment period, VAT is…

Q: What is the average amount of receivables?

A: P81,875 is the average amount of receivables.

Question

The Eglington Newspaper sold 4,000 of annual subscriptions at $125 each on September 1. How much unearned revenue will exist as of December 31?

Select one:

$333,333.
$166,667.
$500,000.
$0.

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

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

At December 31, 2021, Suo’s Boutique had 2,000 gift certificates outstanding, which had been sold to customers during 2021 for P50 each. Sue’s operates on a gross margin of 60% of its sales. What amount of revenue pertaining to the 2,000 outstanding gift certificates should be deferred at December 31, 2021? a. P0 b. P40,000. c. P60,000. d. P100,000.
6
Ayayai Corp. typically sells subscriptions on an annual basis and publishes 6 times a year. The magazine sells 84600 subscriptions in January at $9 each. What entry is made in January to record the sale of the subscriptions? O Cash 761400 Unearned Subscription Revenue 761400 O subscriptions Receivable Unearned Subscription Revenue 126900 126900 O Subscriptions Receivable Subscription Revenue 761400 761400 O Prepaid Subscriptions 761400 Cash 761400
Bingo Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. 1. What is the average amount of accounts receivable? (Use 360-day year)
Skysong, Inc. typically sells subscriptions on an annual basis, and publishes 8 times a year. The magazine sells 49600 subscriptions in January at $11 each. What entry is made in January to record the sale of the subscriptions? Cash 545600 Unearned Subscription Revenue 545600 Subscriptions Receivable 545600 Subscription Revenue 545600 Prepaid Subscriptions 545600 Cash 545600 Subscriptions Receivable 68200 Unearned Subscription Revenue 68200
NEKO Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cash sales. 30% pays on the 20th day and take discounts while the remaining customers always pay on time. What is the average amount of accounts receivable? (Use 360-day year)
32. If Adel allows a 2 percent cash discount if collected in the month of sale, it isexpected that 60 percent will be collected in the month of sale and the balance in the month following. How much will be collected from customers in December under the newpercentages?a. P17,500b. P18,500c. P16,290d. P20,000
On January 1, Fashion Magazine received $16,440 from subscribers for the annual subscriptions that it recorded in Unearned Revenue. The issues of the magazine are sent digitally to subscribers monthly. What amount of subscription revenue should the magazine recognize on January 31 when the first issue is sent? Multiple Choice O $16,440. $1,370. $8,220. $4,110. $0.
Bonita Company typically sells subscriptions on an annual basis and publishes six times a year. The magazine sells 85000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions? Subscriptions Receivable Subscription Revenue Prepaid Subscriptions Cash Subscriptions Receivable Unearned Subscription Revenue Cash Unearned Subscription Revenue 1275000 1275000 225000 1275000 1275000 1275000 225000 1275000
10. Naronath & Co. has a.DSO of 30 days, and its annual sales are $6,500,000. What is its accounts receivable balance? Assume that it uses 365-day year. a) $17,808 O b) $216,666 O c) $534,247 O d) $593,607 e) None of the above
Lily Corp. Corp. sells on term 2/20, net 40. Total credit sale for the year are P180,000. 40% pays on the 20th day and take discounts while the rest pay on the due date. What is the average amount of accounts receivable? (Use 360-day year) a. 16,000 b. 36,667 c. 26,667 d. 12,000
Please Give the answer of this question