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.

Required:

1.	How much revenue should Manhattan Today recognize upon receipt of the $260 subscription price?

Answer: No Revenue Recognize

2.	How many performance obligations exist in this contract?

Answer: 2

3.	Prepare the journal entry to recognize sale of 10 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.)
Answer:	Debit. Cash [ ? ] Credit. Deferred Revenue--Subscription [ ? ] Credit. Deferred Revenue--Coupon [ ? ] Show Steps please