Question

In: Accounting

1) A magazine company sells a 1-year subscription for $23.88 and a 2-year subscription for $38.16...

1) A magazine company sells a 1-year subscription for $23.88 and a 2-year
subscription for $38.16 on January 1, 2009.
Create the journal entry to record both the sale and the associated
adjusting entry on January 31, 2009 (check figure: balance of unearned subscription revenue after all transactions = 58.46)

Solutions

Expert Solution

Date Account titles and Explanation Debit Credit
Jan. 1 Cash $62.04
     Unearned subscription revenue    [$23.88 + $38.16] $62.04
(To record unearned revenue)
Jan. 31 Unearned subscription revenue $3.58
     Subscription revenue       [Refer working note below] $3.58
(To record revenue)

.

.

ekkarill92 answered 3 years ago
Next > < Previous

Related Solutions

A company receives $360 for a 12-month trade magazine subscription on August 1.
true or falseA company receives $360 for a 12-month trade magazine subscription on August 1. The adjusting entry on December 31 is a debit to Unearned Subscription Revenue, $150, and credit to Subscription Revenue, $150
The annual subscription to a magazine costs $50 and this cost is expected to increase by...
The annual subscription to a magazine costs $50 and this cost is expected to increase by 10 percent per year. A life subscription, on the other hand, costs $500. The relevant discount rate for analyzing this situation is 12 percent. In order to justify taking out a life subscription, what is your minimum life expectancy (approximately)
You have just been approached by a magazine with an offer for renewing your subscription. You...
You have just been approached by a magazine with an offer for renewing your subscription. You can renew for one year at $20, two years for $36, or three years at $45. Assuming that you have an opportunity cost of 20% and the cost of a subscription will not change over time, which of these three options should you choose? A) 1 year at $20 B) 2 years at $36 C) 3 years at $45
A fashion magazine provides a yearly subscription service. According to historical data, about 72% of the...
A fashion magazine provides a yearly subscription service. According to historical data, about 72% of the customers renew their subscriptions each year. The manager of the magazine office believes the percentage would be higher if they change their service to be a monthly subscription. After 12 months, the manager randomly selected 500 customers and found 387 of them renewed the subscription. She conducts a hypothesis test where H0:p=0.72, and Ha:p>0.72 at the α=.05 level. She finds the p-value is 0.0036....
SuMan Magazine Publishing Company sells magazine subscriptions on an annual basis covering 12 issues. Subscriptions totaling...
SuMan Magazine Publishing Company sells magazine subscriptions on an annual basis covering 12 issues. Subscriptions totaling $36,000 were collected on June 1, 2012 and the total amount collected was recorded in a temporary account. The monthly magazines were delivered in June through December. The required adjusting entry at December 31, 2012 would include: a debit to Unearned Magazine Revenues. a credit to Magazine Revenues. a debit to Accounts Receivable. a debit to Magazine Revenues. none of the above.
​Wellness, a healthy living​ magazine, collected $ 540, 000 in subscription revenue on May 31. Each...
​Wellness, a healthy living​ magazine, collected $ 540, 000 in subscription revenue on May 31. Each subscriber will receive an issue of the magazine in each of the next 12​ months, beginning with the June issue. The company uses the accrual method of accounting. What is the balance in the Unearned Revenue account as of December​ 31?
Netflix sells a subscription service to 2 types of customers:hardcore movie-watchers who usually watch 10...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10 movies a month and value the service at $50 a month (or $5 per movie), and casual movie-watchers who usually watch 5 movies a month and value the service at $20 a month (or $4 per movie). There are an equal number of customers of each type. Which of the following pricing strategies generates the most profit for Netflix?price the subscription as free and...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10 movies a month and value the service at $50 a month (or $5 per movie), and casual movie-watchers who usually watch 5 movies a month and value the service at $20 a month (or $4 per movie). There are an equal number of customers of each type. Which of the following pricing strategies generates the most profit for Netflix? price the subscription as free...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10 movies a month and value the service at $50 a month (or $5 per movie), and casual movie-watchers who usually watch 5 movies a month and value the service at $20 a month (or $4 per movie). There are an equal number of customers of each type. Which of the following pricing strategies generates the most profit for Netflix? price the subscription as free...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10...
Netflix sells a subscription service to 2 types of customers: hardcore movie-watchers who usually watch 10 movies a month and value the service at $50 a month (or $5 per movie), and casual movie-watchers who usually watch 5 movies a month and value the service at $20 a month (or $4 per movie). There are an equal number of customers of each type. Which of the following pricing strategies generates the most profit for Netflix? price the subscription as free...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT