please complete required 1 2 and 3
Check my WUER Exercise 6-7 (Algo) Performance obligations; customer option for additional goods or services; prepayment [LO6-3, 6-4, 6-5) A New York City daily newspaper called "Manhattan Today" charges an annual subscription fee of $216. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $210 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 $200 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 $210 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation Complete this question by entering your answers in the tabs below. Reg 1 and 2 Req3 1. How much revenue should Manhattan Today recognize upon receipt of the $210 subscription price? 2. How many performance obligations exist in this contract? 1. Revenue 2. Number of performance obligations Rega > A New York City daily newspaper called "Manhattan Today" charges an annual subscription fee of $216. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $210 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 $200 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 $210 subscription price? 2. How many performance obligations exist in this contract? 3. Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred 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.) No Transaction Credit General Journal Cash Deferred revenue - coupons Debit 3,150
