Chapter 4, Problem 9CP

1.

To determine

Identify the amount that should be reported as cash from operations on the statement of cash flows for the year ended March 31, 2016.

2.

To determine

Identify the amount that should be reported on the income statement for subscriptions revenue for the year ended March 31, 2016.

3.

To determine

Identify the amount that should be reported on the March 31, 2016, balance sheet for unearned subscriptions revenue.

4.

To determine

Prepare the adjusting entry at March 31, 2016 by assuming that the subscriptions received on September 1, 2015, were recorded for the full amount in unearned subscriptions revenue.

5(a)

To determine

Evaluate the region’s performance by assuming revenue target is based on cash sales

5(b)

To determine

Evaluate the region’s performance by assuming revenue target is based on accrual accounting.