Q3:

[The following information applies to the questions displayed below.]

The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows:

Revenues

Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided.

Assume TRP (a) collected $540 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $264 million of services on these subscriptions in 2021, and (c) provided $276 million of services on these subscriptions in 2022.

Required:

1. Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)

Transactions	Assets		=	Liabilities		+	Stockholder's Equity
(a)			=			+
(b)			=			+
(c)			=			+

2. Using the information given, prepare the journal entries that would be recorded for (a), (b), and (c). (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in whole dollars.)

Journal entry worksheet

1. Record the collection of $540,000,000 for magazine subscriptions to be delivered later in 2021 and 2022.

2.Record the service revenue of $264,000,000 earned in 2021.

3. Record the service revenue of $276,000,000 earned in 2022.

Date	General Journal	Debit	Credit
2021
2021
2022

On January 1, 2021, Surreal Manufacturing issued 550 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $534,739. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Q4:

Required:

1. 1. Prepare a bond amortization schedule.

2. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 101.

Req 1

Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond in the last period. Interest expense in the last period will result in the amount in Discount Amortized equaling Discount on Bonds Payable.)