Boston Publishing Company publishes a hobby magazine titled Crocheting Today every month. The company sells annual subscriptions for $48. On March |, 2000, the company received payment for |,000 subscriptions for this monthly magazine. On March |, 2001, the company received payment for 600 annual renewals and 800 new subscriptions for this magazine. On July 2, 2001, the company received payment for another 300 subscriptions to the magazine.

Required: (1) Compute the amount of cash the company received from these subscriptions during

(a) 2000 and

(b) 2001.

(2) Compute the amount of revenue the company recorded from these subscriptions in

(a) 2000 and

(b) 2001.

(3) Explain why the cash the company received from these subscriptions during 2000 and 2001 was not recorded as revenue at the time the cash was received.

(4) Compute the amount of the liability the company owed to these subscribers at the end of

(a) 2000 and

(b) 2001. Explain why these amounts were current liabilities for the company. TYK-1