Question
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
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 $520 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $254 million of services on these subscriptions in 2021, and (c) provided $266 million of services on these subscriptions in 2022.
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 thefirstaccount field. Enter your answers in wholedollars.)
1.a Record the collection of $520,000,000 for magazine subscriptions to be delivered later in 2021 and 2022.
2.aRecord the service revenue of $254,000,000 earned in 2021.
3.a Record the service revenue of $266,000,000 earned in 2022.
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