Revenues are normally recognized when the company transfers promised goods or services in the amount the company expects to be entited to receive. Assume that the following transactions occurred in September: a. A poputar ski magazine company receives a total of $12,345 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint. b. On September 1 of the current year, a bank lends $15,000 to a company, the note principal and $1,500[$15,00010 percent] annual interest are due in one year. Answer from the bonk's standpoint. c. Fucillo Automotive Group (offering a wide variety of car and truck brands) sells a Ford F-150 truck with a list, or "sticker," price of $34,050 for $32,000cash. d. Macy's department store orders 1,000 men's shirts for $21 each for future delvery from PVH Corporation, manufacturer of IZOD. ARROW, Van Heusen, Calvin Klein, and Tommy Hifiger and other brand dame appareL. The terms require payment in full within 30 days of deliwery. Answer from PVH Corporation's standpoint. e. PVH Corporation completes production of the shirts described in (o) and delivers the order. Answer from PVH's standpoint. f. PVH Corporation receives payment from Macy's for the events described in (of) and (e). Answer from PVH's standpoint. 9. A customer purchases a ticket from American Airlnes for $780 cash to travel the following January. Answer from American Airlines's standpoint. h. Ford Motor Company lssues $15 milion in new common stock. i. Michigan State University receives $27,440,000 cash for 80,000 seven-game season footholl tickets to be played in the upcoming seeson. J. Michligon State plays the first football game referred to in w k. Precision Builders signs a contract with a customer for the construction of a new $1,500,000 warehouse. At the signing. Precision receives a check for $200,000 as a deposit on the future construction. Answer from Preeision's standpoint. L. Best Buy receives inventory of 100 laptop computers from Del; Best Buy promises to pay $60,000 wathin three months. Answer from Doli's standpoint. m. Amazon.com delivers a $300 lamp to a customer who charges the purchase on his Amazon.com Store Card. Answer from Amazon's standpoint. Required: For each of the transactions, if revenue is to be recopnized in September, indicate the rovenue account tite and amount. Note: If revenue is not recognized choose "None". k. Precision Buliders signs a contract with a customer for the construction of a new $1,500,000 warehouse. At the signing. Precision receives a check for $200,000 as a deposit on the future construction. Answer from Precision's standpoint. L. Best Buy receives inventory of 100 laptop computers from Dell; Best Buy promises to pay $60,000 within three months. Answe from Dell's standpoint m. Amazon.com delivers a $300 lamp to a customer who charges the purchase on his Amazon.com Store Card. Answer from Amazon's standpoint. Required: For each of the transactions, If revenue is to be recognized in Septembec, indicate the revenue account title and amount. Note: If revenue is not recognized choose "None
