A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $$108.$ Customers prepay their

subscriptions and receive $260$ 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:

How much revenue should Manhattan Today recognize upon receipt of the $$110$ subscription price?

How many performance obligations exist in this contract?

Prepare the journal entry to recognize sale of $14$ new subscriptions, clearly identifying the revenue or deferred revenue

associated with each performance obligation.

Complete this question by entering your answers in the tabs below.

Prepare the journal entry to recognize sale of $14$ new subscriptions, clearly identifying the revenue or deferred revenue associated with

each performance obligation.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

A

Record the sale of $14$ new subscriptions.