Prepare a report on the accounting implications of the issues. When the accounting for an individual transaction has not been specified, you should indicate how it should be accounted for and the impact that the accounting would have had on the key metric(s).

Please base on the CPA Guidlines.

The company is staging a Canadian version of Rue St. Germaine, which is to open in November, Year 7. The smash-hit musical has been running in Paris for three years and is still playing to sold-out audiences. SFC started receiving advance bookings in November, Year 6, and the first 40 weeks of the shows run are completely sold out. As at June 22, Year 7, SFC has already collected $22 million from the advance bookings and invested the cash in interest-bearing securities. It included in revenue $1.7 million of interest collected on the funds received from advance ticket sales. In addition to the substantial investment in advertising for this production ($4 million), the company will have invested $15 million in preproduction costs by November, Year 7, and will incur weekly production costs of $250,000 once the show opens. SFC has retained Modale Inc. (Modale), a company that specializes in entertainment-related advertising and promotion, to promote SFCs activities. Modale bills SFCs corporate office for all advertising and promotion related to SFCs activities. Advertising and promotions have significantly increased this year, in part due to large costs associated with the forthcoming opening of Rue St. Germaine. Modale has billed SFC $12 million this year for advertising and promotion, an increase of $7 million over the preceding year.