Question: Entity A sells 2-year subscriptions for online software. As of December 31, 20x1, Entity A's unearned subscription revenue has a balance of P1M, of which

Entity A sells 2-year subscriptions for online software. As of December 31, 20x1, Entity A's unearned subscription revenue has a balance of P1M, of which 60% will be earned in 20x2 and the remaining balance is 20x3. Entity A should [resent the unearned subscription as follows:

Liabilities Noncurrent Liabilities

A. Unearned revenue, P1M --

B. Unearned revenue, P.6M Deferred revenue, P.4M

C. --- Deferred revenue, P1M

D. Any of thse as a matter of accounting policy choice.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

John Parsons ( 1 2 3 - 4 5 - 6 7 8 1 ) and George Smith ( 1 2 3 - 4 5 - 6 7 8 2 ) are 7 0 % and 3 0 % owners, respectively, of Premium, Inc. ( 1 1 - 1 1 1 1 1 2 0 ) , a candy company located at 1 0 0...

Entity A sells 2-year subscriptions for online software. As of December 31, 20x1, Entity A's unearned subscriptions revenue has a balance of P1M, of which 60% will be earned in 20x2 and the remaining...

Entity A sells 2-year subscriptions for online software. As of December 31, 20x1, Entity A's unearned subscription revenue has a balance of P1M, of which 60% will be earned in 20x2 and the...

Exercise 12.7 (Static) Recording adjustments for accrued and deferred income items. LO 12-3 a. On December 31, 20X1, the Notes Receivable account at Sufen Motetlals Corporation had a balance of...

Included in this folder you will find a power point presentation that outlines the basics of the new Revenue Recognition Standard. Included in these slides are specific examples that show you how the...

a. On December 31, 20X1, the Notes Receivable account at Sufen Materials Corporation had a balance of $25,000, which represented a six-month, 6 percent note received from a customer on September 1....

a. On December 31, 20X1, the Notes Receivable account at Eliassen Materials Corporation had a balance of $17,000, which represented a six-month, 12 percent note received from a customer on September...

a. On December 31, 20X1, the Notes Receivable account at Sufen Materials Corporation had a balance of $20,000, which represented a six-month, 12 percent note received from a customer on September 1....

a. On December 31, 20X1, the Notes Receivable account at Sufen Materials Corporation had a balance of $15,000, which represented a six-month, 10 percent note received from a customer on September 1....

I have completed part of this assignment, just need the answers to the rest of the problems. Thanks! Ch 10 Graded Assignment Note: To receive partial credit on problems which require calculations,...

For to = (1/2)(1 + i), let G be the multiplicative group {wn|n Z+, 1 n 8}. (a) Show that G is cyclic and find each element x e G such that (x) = G. (b) Prove that G is isomorphic to the group (Z8,...

Chlorination of ethane yields, in addition to ethyl chloride, a mixture of two isomeric dichlorides. What are the structures of these two dichlorides?

Laura paid her supplier $ . 7 5 and a stem for roses to sell at her flower shop. She added an 8 0 % markup. What is the amount of markup

Thank you for your help! 1. Kyle Carlson invested $10,000 in a savings account paying 12% interest compounded quarterly. Assuming that he makes no withdrawals, how much interest will he earn during...