Question
Readers Digest Association is a publisher of magazines, books, and music collections. The following note is from a recent annual report: Revenues Sales of our
Readers Digest Association is a publisher of magazines, books, and music collections. The following note is from a recent annual report: Revenues Sales of our magazine subscriptions are deferred (as unearned revenue) and recognized as revenues proportionately over the subscription period. Assume that Readers Digest (a) collected $420 million in 2012 for magazines that will be delivered later in 2012 and 2013, and (b) delivered $204 million worth of magazines on these subscriptions in 2012. Required: 1. Using the information given, indicate the accounts, amounts, and accounting equation effects (+ for increase, for decrease) of transactions (a) and (b). (Enter all amounts as positive values. Enter your answers in whole dollars.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started