Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Davidson Media owns a weekly magazine called Endurance Sports, and sells annual subscriptions for $90. Customers prepay their subscription fee and receive 52 issues starting
Davidson Media owns a weekly magazine called "Endurance Sports," and sells annual subscriptions for $90. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company has started a new marketing campaign and offers new subscribers the same $90 subscription rate and a 25% discount coupon on its other magazine called "Off-road Adventures," which has a list price of $60 for an annual subscription. Davidson estimates that approximately 40% of the discount coupons will be redeemed. (12 points) Required: (a) How many performance obligations are in a single subscription contract? Explain the reasons for your answer (b) Prepare the journal entry to account for one new subscription of "Endurance Sports," clearly identifying the revenue or deferred revenue associated with each performance obligation Kipling Industries issued 10% stated rate bonds with a face amount of $200 million on June 30, 2020. The bonds mature on June 30, 2040 (20 years). The market rate of interest for similar bond issues was 8%. Interest is paid semiannually on June 30 and December 31, beginning on December 31, 2020. Required: Determine the price of the bonds on June 30, 2020
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started