E3-3 LO3-2, 3-3 Identifying Revenues Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entitled to receive. The amount recorded is the cash-equivalent sales price. Assume that the following transactions occurred in September: A popular ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. On September 1 of the current year, a bank lends $15,000 to a company; the note principal and $1,500 ($15,000 10 percent) annual interest are due in one year. Answer from the bank's standpoint. Fucillo Automotive Group (offering a wide variety of car and truck brands) sells a Ford F-150 truck with a list, or "sticker," price of $34,050 for $32,000 cash. Macy's department store orders 1,000 men's shirts for $16 each for future delivery from PVH Corp., manufacturer of IZOD, ARROW, Van Heusen, Calvin Klein, and Tommy Hilfiger and other brand-name apparel. The terms require payment in full within 30 days of delivery. Answer from PVH Corp.'s standpoint. PVH Corp. completes production of the shirts described in (d) and delivers the order. Answer from PVH's standpoint. PVH Corp. receives payment from Macy's for the events described in (d) and (e). Answer from PVH's standpoint. A customer purchases a ticket from American Airlines for $780 cash to travel the following January. Answer from American Airlines's standpoint. Ford Motor Company issues $15 million in new common stock.