Metropolis Books sold 50,000 copies of a best-selling novel in July for $8 each. Included in each
Question:
Metropolis Books sold 50,000 copies of a best-selling novel in July for $8 each. Included in each book was a $2 mail-in rebate for a future book purchase if the customer sends in proof of purchase with a completed rebate form. Metropolis estimates that 10% of the purchasers will claim the rebate.
(a) Calculate the sales revenue and the unearned revenue related to the loyalty program that Metropolis earned in July on this book.
(b) Prepare the journal entry to record the sale and the unearned revenue Metropolis Books should record.
Step by Step Answer:
a b Standalone book sales 50000 novels 8 St...View the full answer
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
Students also viewed these Business questions
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
Prepare the journal entry to record Selectist Companys issuance of 104,000 shares of no-par value common stock assuming the shares: a. Sell for $15 cash per share. b. Are exchanged for land valued at...
-
Prepare the journal entry to record income taxes on December 31, 2011, assuming that Turner Corporations income tax expense is $35,000 and that it owes $30,000 in income taxes to the government....
-
The technique of performance management that establishes and monitors four dimensions of performance: Question 11Answer a. Profit, sales, productivity, and asset management performance b. Financial,...
-
Club Loop Corporation (CL) is a large owner, operator, and developer of golf clubs and resorts. The company is privately owned by several wealthy individuals. During the current year, according to...
-
White Pear Inc., an organic soap manufacturer, showed the following equity information as at December 31, 2020: Other information: a. The preferred shares had sold for an average price of $36.00. b....
-
A train is comprised of an engine car of inertia \(M\), and 3 more cars of inertias \(m_{1}, m_{2}\), and \(m_{3}\), respectively. The acceleration of the train is \(a\). Friction can be ignored. (a)...
-
Sharp Screen Films, Inc., is developing its annual financial statements at December 31, 2015. The statements are complete except for the statement of cash flows. The completed comparative balance...
-
Trying to break an encryption key by trying every possible combination of characters is called what? 1 point A social engineering attack A brute force attack A rainbow table attack A known cyphertext...
-
One way to see whether this procedure will be successful is to split the original data set into two subsets: one subset for estimation and one subset for validation. A regression equation is...
-
Victor is studying for the next accounting examination. He asks for your help on two questions: (a) What is residual value? (b) Is residual value used in determining periodic depreciation under each...
-
The following are independent situations. 1. The results for the economic performance confirm Sams predictions about the company. 2. The manager records the cost of a new building as an asset. 3. A...
-
Find the directional derivative of the function at the given point in the direction of the vector v. f(x, y, z) = xy 2 tan -1 z, (2, 1, 1), v = (1, 1, 1)
-
Carolyn Humphrey brought suit against her former employer, Memorial Hospitals Association (MHA), under the Americans with Disabilities Act (ADA) and its California counterpart, the Fair Employment...
-
Generalize further and show that for any whole number \(r\), the \(r\) th root \(\sqrt[r]{A}\) is irrational unless \(A\) is an \(r\) th power. Let \(x=\sqrt[r]{A}\). Show that if \(x\) is rational,...
-
Chemco Ltd. is engaged in the production of chemical products and selling them locally. The company wishes to extend its market and export some of its products. It has come to the attention of the...
-
The issued share capital of Edwards ple consists of 800,000 ordinary shares. There are no preference shares. Some years ago, the entity issued EUR 2m of 10 per cent convertible loan stock. The...
-
(a) What is a construction contract? (b) How and why should construction contracts be combined or segmented? (c) How is the stage of completion determined? (d) What is the effect of variations and...
-
Consider a bond with a $1,000 face value, 10 years to maturity, and $80 annual coupon interest payments. The bond sells at a price that produces a 10% yield-to-maturity. That yield is expected to...
-
In a system with light damping (c < cc), the period of vibration is commonly defined as the time interval d = 2/d corresponding to two successive points where the displacement-time curve touches one...
-
Steig's Sports Store has a customer loyalty program in which it issues points to customers for every cash purchase that can be applied to future purchases. For every dollar spent, a customer receives...
-
Hidden Dragon Restaurant's gross payroll for April is $46,600. The company deducted $2,162 for CPP, $853 for EI, and $9,011 for income taxes from the employees' cheques. Employees are paid monthly at...
-
Emerald Enterprises has three notes payable outstanding on December 31, 2016, as follows: 1. A six-year, 6%, $60,000 note payable issued on March 31, 2016. Emerald Enterprises is required to pay...
-
Why are good accounting practices important for a business? Explain in details.
-
1. What are retained earnings and how are they calculated? 2. How do retained earnings impact a company's financial statements? 3. What is the difference between retained earnings and net income? 4....
-
What is the distinction between cash premise and gathering premise bookkeeping? How does the matching guideline affect budget reports? Make sense of the idea of deterioration and its significance in...
Study smarter with the SolutionInn App