In its 2016 annual report to shareholders, Ank Morpork Times Inc included the following disclosure Revenue Recognition Advertising revenue is recognized when advertisements are published, are broadcast, or when placed on the Company's websites, net of provisions for estimated rebates, credit and rate adjustments and discounts Circulation revenue includes single copy and home delivery subscription revenue Single copy revenue is recognized based on date of publication, net of provisions for related returns Proceeds from home delivery subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are recognized in earnings on a pro rata basis over the terms of the subscriptions Other revenue is recognized when the related service or product has been delivered Also, the following information on its current liabilities was included in its comparative balance sheets CURRENT LIABILITIES 2016 2015 Commercial paper outstanding $ 162,300,000 $ 295,251,000 Accounts payable $ 174,950,000 $ 178,552,000 Accrued payroll and other related liabilities $ 85,299,000 $ 130,983,000 Accrued expenses $ 164,867,000 $ 194,748,000 Accrued income taxes $ 229,220,000 $ 9,892,000 Unexpired subscriptions $ 65,706,000 $ 85,385,000 Current portion of long term debt and capital lease obligations $ 2,574,000 $ 2,639,000 Total current liabilities $ 884,916,000 $ 897,450,000 Required Assuming that Ank Morpork Times Inc collected $444,000,000 in cash for home delivery subscriptions during fiscal year 2016, what amount of revenue did it recognize during 2016 from this source Show the relevant T account information to support your answer

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Posted on Sep 18, 2024

In its 2016 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure: Revenue Recognition Advertising revenue is recognized when advertisements are published, are

In its 2016 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure:

Revenue Recognition

	Advertising revenue is recognized when advertisements are published, are broadcast, or when placed on the Company's websites, net of provisions for estimated rebates, credit and rate adjustments and discounts.
	Circulation revenue includes single copy and home-delivery subscription revenue. Single copy revenue is recognized based on date of publication, net of provisions for related returns. Proceeds from home-delivery subscriptions and related costs, principally agency commissions, are deferred at the time of sale and are recognized in earnings on a pro rata basis over the terms of the subscriptions.
	Other revenue is recognized when the related service or product has been delivered.

Also, the following information on its current liabilities was included in its comparative balance sheets:

CURRENT LIABILITIES		2016		2015
Commercial paper outstanding	$	162,300,000	$	295,251,000
Accounts payable	$	174,950,000	$	178,552,000
Accrued payroll and other related liabilities	$	85,299,000	$	130,983,000
Accrued expenses	$	164,867,000	$	194,748,000
Accrued income taxes	$	229,220,000	$	9,892,000
Unexpired subscriptions	$	65,706,000	$	85,385,000
Current portion of long-term debt and capital lease obligations	$	2,574,000	$	2,639,000

Total current liabilities	$	884,916,000	$	897,450,000

Required:

Assuming that Ank-Morpork Times Inc. collected $444,000,000 in cash for home-delivery subscriptions during fiscal year 2016, what amount of revenue did it recognize during 2016 from this source? Show the relevant T-account information to support your answer.