A publisher sells subscriptions to its print publications and to its online versions of the same...

A publisher sells subscriptions to its print publications and to its online versions of the same publications. A customer can buy a print-only subscription for (see separate sheet) months for (see separate sheet), or a print subscription plus an online subscription for (see separate sheet). Experience shows that almost all customers buy the print plus the online subscription, so the publisher does not allocate between print only and print plus online; it simply treats everything—even the print-only subscriptions—for accounting purposes as if it were print plus online.

Assume that the publisher sells this number of subscriptions (see separate sheet). Make the journal entries for (a) the sale of the subscriptions and (b) the monthly amount of subscription revenue.

Number of months subscription is good for- 12

Subscription Price, print only- 107.00

Subscription price, print plus online- 108.00

Number of subscriptions sold, print plus online-94

Expert Solution

ekkarill92 answered 1 year ago

all Question QUESTION 2 A magazine publisher offers its customers three option on subscriptions: Option A:...

all Question QUESTION 2 A magazine publisher offers its customers three option on subscriptions: Option A: $50 today for three years. Option B: A two-year rate of $38 paid immediately, followed by a one-year rate of $17 paid at the beginning of the third year. Option C: $17 paid at the beginning of each of the three years. a) From the perspective of the company, which option is best if the company’s opportunity cost of funds is 8%? Explain. b)...

PrimeFlix sells one-year online subscriptions for viewing classic movies. Customers are required to pay for the...

PrimeFlix sells one-year online subscriptions for viewing classic movies. Customers are required to pay for the subscription at the beginning of the subscription period. On April 1, 2021, total sales of one-year subscriptions are $12,000. What is the adjusted balance of Deferred Revenue on December 31, 2021? $9,000. $3,000. $0. $12,000.

If a magazine publisher receives $12 million for annual subscriptions to a monthly magazine on November...

If a magazine publisher receives $12 million for annual subscriptions to a monthly magazine on November 1, what would be the appropriate adjustment on 12/31 assuming no other transactions had taken place? a. Credit Unearned Subscriptions and Debit Subscription Income for two million. b. Debit Unearned Subscriptions and Cr. Subscription Income for two million. c. Debit Prepaid Subscriptions and Cr. Unearned Subscriptions for two million. d. Debit Prepaid Subscriptions and Cr. Unearned Subscriptions for one million.

The Oriole Publications Textbook Company sells all of its books for $100 per book, and it...

The Oriole Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. Management is considering changing the firm’s production technology, which will increase the fixed costs for the firm by 46 percent but decrease the variable costs per unit by 46 percent. If management expects to sell 45,000 books...

The Wildhorse Publications Textbook Company sells all of its books for $100 per book, and it...

The Wildhorse Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. Management is considering changing the firm’s production technology, which will increase the fixed costs for the firm by 36 percent but decrease the variable costs per unit by 36 percent. If management expects to sell 45,000 books...

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.

The publisher of an online newspaper knows that there are two types of customers. ‘students’ and...

The publisher of an online newspaper knows that there are two types of customers. ‘students’ and ‘non-students’. Although they cannot distinguish what type of buyer is actually making a purchase of a subscription, they know the demand curves for each type of buyer. These are given by the following: Students: p = 80 - q Non students: p = 100 - q where is q is the number of articles that are purchased. Assume that the marginal cost of supplying...

An online news site earns revenue by selling subscriptions at price pS and ads at price...

An online news site earns revenue by selling subscriptions at price pS and ads at price pA. For simplicity, assume the site has zero marginal cost. Consumer demand for subscriptions is given by: Qs=1-Ps Demand from advertisers for ad-space depends on the number of subscribers though: Qa=Qs(1-Pa) What price should the firm charge for subscriptions and ads, considered jointly, to maximize profits?

The publisher Reed Elsevier uses a mixed-bundling pricing strategy. The publisher sells a university access to...

The publisher Reed Elsevier uses a mixed-bundling pricing strategy. The publisher sells a university access to a bundle of 930 of its journals for $1.7 million for one year. It also offers the journals separately at individual prices. Because Elsevier offers the journals online (with password access), universities can track how often their students and faculty access journals and then cancel those journals that are seldom read. Suppose that a publisher offers a university only three journals—A, B, and C—at...

A company sells its products online and believes that a change in the design of the...

A company sells its products online and believes that a change in the design of the website and the quality of the photos of the products it exhibits, will increase its sales. So far, with the current design, the daily average of sales has been 9,300 UM (monetary units). Before making a decision, the company decides to do a test for 16 days, presenting its products with the new design of the website. The average sale of these 16 days,...

Question