Question
A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $270. Customers prepay their subscriptions and receive 280 issues over
A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $270. Customers prepay their subscriptions and receive 280 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $260 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 $250 per hour. The company estimates that approximately 30% of the coupons will be redeemed.
3) | Prepare the journal entry to recognize sale of 11 new subscriptions, clearly identifying the revenue or unearned 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.) |
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