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b.

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Exercise 6-7 (Algo) Performance obligations; customer option for additional goods or services; prepayment [LO6-3, 6-4, 6-5] A New York City daily newspaper called "Manhattan Today" charges an annual subscription fee of $108. Customers prepay their subscriptions and receive 270 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $110 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $100 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Required: 1. How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation, Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price? 2. How many performance obligations exist in this contract? 1. How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 1. How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price? 2. How many performance obligations exist in this contract? Revenue Number of performance obligations 0 2 Req 1 and 2 Reg 3 > 1. How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation. Answer not complete. Complete this question by entering your answers in the tabs below. Req 1 and 2 Reg 3 Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 Cash Deferred subscription revenue Deferred revenue - coupons Reg 1 and 2 Regs Exercise 6-8 (Algo) Performance obligations; customer option for additional goods or services (L06-4, 6- 5] On May 1, 2021, Meta Computer, Inc., enters into a contract to sell 5,700 units of Comfort Office Keyboard to one of its clients, Bionics, Inc., at a fixed price of $96,900, to be settled by a cash payment on May 1. Delivery is scheduled for June 1, 2021. As part of the contract, the seller offers a 25% discount coupon to Bionics for any purchases in the next six months. The seller will continue to offer a 5% discount on all sales during the same time period, which will be available to all customers. Based on experience, Meta Computer estimates a 50% probability that Bionics will redeem the 25% discount voucher, and that the coupon will be applied to $57,000 of purchases. The stand-alone selling price for the Comfort Office Keyboard is $19.00 per unit. Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How many performance obligations are in this contract? Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021? * Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How many performance obligations are in this contract? Number of performance obligations Required 1 Required 2 > Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry that Meta would record on May 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction Debit Credit 1 1 General Journal Cash Deferred revenue Deferred revenue - coupons Required: 1. How many performance obligations are in this contract? 2. Prepare the journal entry that Meta would record on May 1, 2021. 3. Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the same facts and circumstances as above, except that Meta gives a 5% discount option to Bionics instead of 25%. In this case, what journal entry would Meta record on May 1, 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No Transaction General Journal Debit Credit 1 Cash Deferred revenue