Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to know the answers for this question.. Application Problem 4-3A al, b Chow Publications Inc. is a publicly traded media company focused on

image text in transcribedimage text in transcribed

I want to know the answers for this question..

Application Problem 4-3A al, b Chow Publications Inc. is a publicly traded media company focused on products for the home chef market. The company publishes a monthly magazine that can be purchased at newsstands and is available for annual subscriptions (either paper copy or digital copy). Chow Publications sells annual subscriptions for $54.00 (paper copies) or $43.20 (digital copies). Subscriptions are paid in advance and are non-cancellable. Chow sold for cash 103,700 subscriptions on December 1, 2020, of which 30% were digital subscriptions. Single issues can be purchased on newsstands. Chow Publications uses various magazine distributors across Canada to rack it at newsstands, charging the newstands $5.40 per copy. Normally 24,700 copies are sent out each month, with 15% of these being returned unsold. Of the 24,700 magazines sent out in December 2020, all were sold on account, and none of the returned magazines are expected to be resold and, as a result, are sent to recycling. Unsold nagazines are returned by newstands in the following month. Determine how much revenue Chow Publications would be able to recognize in December 2020. (Round the per magazine price to 3 decimal places, e.g. $4.965 and final answers to o decimal places, e.g. 125.) Revenue through subscriptions Revenue other than through subscriptions Prepare the required summary journal entries for the contract based on your analysis in part "a." (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Round answers to o decimal places, e.g. 125.) Date Account Titles and Explanation Debit Credit Dec. 1 Dec. 31 v (To record revenue through subscriptions) (To record sales other than through subscriptions)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

3rd Edition

0324313187, 9780324313185

More Books

Students also viewed these Accounting questions

Question

Describe forecasting requirements.

Answered: 1 week ago