In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects

Question:

In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects cash in advance and then downloads the magazines to subscribers each month.

Apply the recognition criteria for revenues to determine

(a) When the company should record revenue for this situation and

(b) The amount of revenue the company should record for the January-through-March downloads.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Horngrens Accounting Volume 1

ISBN: 9780136889373

12th Canadian Edition

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura

See More Books

Question Posted: May 12, 2023 08:51 AM

See More Questions

Sports Online Unlimited sells annual subscriptions for magazines that are downloaded to customers monthly. The company collects cash in advance and then downloads the magazines to subscribers each...
Northwest Magazine sells subscriptions for $ 36 for 12 issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Apply the revenue recognition principle...
Northwest Magazine sells subscriptions for $36 for 12 issues. The company collects cash in advance and then mails out the magazines to subscribers each month. Requirement 1. Apply the revenue...
Is this a confined or unconfined aquifer? Please explain. 100 m amsl 78 m amsl 56 m amsl 48 m amsl A 50 m 11m B Clay Sand Clay 100 m
Calculate cash flow from operations for Tinas Business Inc. using the followinginformation. Net income Depreciation Deferred income taxes Decrease in inventories Decrease in accounts receivable2,000...
What components of net earnings are required by international accounting standards?
In December 2008, Jason Garcia signed a motor vehicle sales contract with Mac Haik Dodge Chrysler Jeep, a dealer. In the contract, Garcia agreed to purchase a 2009 Dodge Ram 1500. The contract...
Oasis Health Care Inc. is owned and operated by Dr. George Hancock, the sole stockholder. During January 2013, Oasis Health Care entered into the following transactions: Jan. 1 Received $15,000 from...
46. Consider the functions Find the following limits: x + sin x, for x>0 f(x) = 0, for x = 0 -x + cos x, for x <0 g(x) = x, for any x = R. f(x) (a) lim x+0+ g(x)' (b) lim f(x) x400 g(x)' f(x) (c) lim...
Golden Eagle Company began operations in 2016 by selling a single product. Data on purchases and sales for the year were as follows: On January 4, 2017, the president of the company, Connie Kilmer,...
Start from the unadjusted trial balance that Crystal Clear Cleaning prepared at November 30, 2022: Required 1. Using the data provided from the unadjusted trial balance and Chapter 2, prepare all...
Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current...
import java.util.LinkedList; import java.util.Scanner; public class Agency { private Administrator loggedInUser; private Destinations destinations; private Flights flights; private Administrators...
Assuming a circular orbit of radius 93 million miles, approximately, what is the average speed in mi/h of the earth revolving around the sun?
In 2016, JP Morgan and Nuveen Asset Management made 9.5% profit on $150 million, and 25% on $613 million respectively in Chicago Public School (CPS) bonds. How did these investment firms make these...
In "what leaders need to know about organizational culture", D.D. Warrick discussed a common debate among organizational culture theorist. The debate is whether culture shapes practices or if...
Alex is currently working in a directory containing only one file, Afile1. What is displayed after the following commands are entered in bash shell? [user@pluto user]$ MYVAR=Is [user@pluto user]$...
Using the data on the student data set for Problem 14.09, construct a schedule in MS Project. Show where the project is ahead and/or behind schedule. Be specific. Which activities did the best? Which...
What is the difference between direct materials and indirect materials?
Use the data in Short Exercise 14A-2 and your results. Requirement 1. Prepare the businesss complete statement of cash flows for the year ended June 30, 2012, using the direct method for operating...
Obj. 3, Obj. 4, 5 The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall common stock was $82.60 on December 31, 20Y2. EXCEL TEMPLATE Marshall Inc....
A 1 B Name: D E F G H Your score: 0% 2 On January 1, 202 3 4 5 ? Company borrows $170,000 cash by signing a 2-year, 6%, installment note, with quarterly interest payments. 1) Calculate the amount of...
Bramble Inc. sells 1,420 common shares on a subscription basis at $66 per share on June 1 and accepts a 40% down payment. On December 1, Bramble collects the remaining 60% and issues the shares....

In December, Northern Kiteboarding magazine collected $80,000 for subscriptions for the next calendar year. The company collects

Question:

Step by Step Answer:

a According to the revenue recognition principle revenue should be recognized when it is earned and ...View the full answer

Horngrens Accounting Volume 1

Students also viewed these Business questions