Mammoth Publishing, Inc. owns a weekly magazine called "Nova Health," and sells annual subscriptions for $96. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called "Fishing & Camping," which has a list price of $84 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed. Required: (a) How many performance obligations are in a single subscription contract? (b) Prepare the journal entry to account for one new subscription of "Nova Health," clearly identifying the revenue or deferred revenue associated with each performance obligation.
Q: A company contemplating the acceptance of a special order has the following unit Direct materials $4…
A: Marginal revenue is determined by examining the earnings from the sale of one extra unit, whereas…
Q: mith Brothers Pharmaceutical Company has $250,000 in excess cash and is considering two…
A: The ability to elect the board of directors and have a significant impact on corporate policies…
Q: At year-end, a storm surge damaged the warehouse of Beaver Company. The entire inventory and many…
A: Cost of goods sold is actual cost of goods that is being sold to the customers. It includes…
Q: Complete a Cash Budget for Lindor Enterprises.
A: Cash Budget is prepared to provide for the estimated cash requirements of the business entity.It…
Q: Caldwell Supply, a wholesaler, has determined that its operations have three primary activities:…
A: Target costing is a proactive cost management technique that lowers a product's overall cost…
Q: Asteroid produces and sells mountain bikes and has four keys products. this year, for the first…
A: The objective of the question is to calculate the total production cost of two products, 'Tour' and…
Q: Machine Replacement Decision A company is considering replacing an old piece of machinery, which…
A: Differential Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: A company has the following information in its records. Certain data have been intentionally omitted…
A: In this question, we will find out the beginning inventory, ending inventory, cost of goods…
Q: Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility…
A: The deductible amount of investigation expenses related to expansion of her hotel chain in another…
Q: 1. Classify each of the following costs as a Manufacturing cost or a Nonmanufacturing cost. For each…
A: Expenses incurred during the production of an item are known as manufacturing expenses. Expenses…
Q: A small paper producer is considering the purchase of a new machine to add to their assembly line.…
A: When investing, one must evaluate the risks, carry out due diligence, and make well-informed choices…
Q: Sully Company's inventory records for the most recent year contain the following data: (Click the…
A: Inventory valuation is based on the flow of issuing inventory used by the organization. It can be…
Q: Green Technologies is a leading global end-to-end technology provider, with a portfolio of hardware,…
A: Bad Debt: It is the amount of money owed to a customer that they are unable to collect.Gross…
Q: Winnick Corporation is operating at 75% of capacity, which means it produces 7,900 units. Variable…
A: Lets understand the basics.When special order situation arises, management needs to choose whether…
Q: At the beginning of the current season on April 1, the records of Ayayai Pro Shop showed Cash…
A: Accounting equation is one of useful concept being used in accounting. As per this concept, total…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: Accounting equation indicates that company's total assets are equal to the sum of its liabilities…
Q: On December 31, 2020, Dow Steel Corporation had 740,000 shares of common stock and 44,000 shares of…
A: EPS represents "Earnings Per Share." The percentage of a company's earnings allotted to each…
Q: For Sheffield Inc., variable manufacturing overhead costs are expected to be $25,200 in the first…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and…
Q: Windhoek Mines, Limited, of Namibia, is contemplating the purchase of equipment to exploit a mineral…
A: NPV) is a frequently used tool in business decision-making to evaluate the economic viability of…
Q: North Country Wood Toys makes wooden toys for children of all ages. They use two departments:…
A: Equivalent units of production are an indication to show the work in process inventory at the end of…
Q: anuary 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest…
A: Amortization is not the same as depreciation, which is the methodical distribution of an asset's…
Q: PINA COLADA CORPORATION Condensed Income Statements For the Years Ended December 31 Net sales Cost…
A: The income statement is one of the important financial statements of the business. It records the…
Q: Applying Excel 4: Total Plant Assets 1 10 11 12 13 14 15 16 17 18 19 20 A Current assets Cash…
A: The total plant value of assets includes all the tangible assets such as plant, machinery, land,…
Q: In 2015, Mr. O'Toole made Home Buyer's Plan (HBP) withdrawals that totaled $18,000. However, for the…
A: Under the Home Buyers' Plan (HBP), individuals can take money out of their Registered Retirement…
Q: Carla Vista Company manufactures products ranging from simple automated machinery to complex systems…
A: A performance obligation is a commitment made in a legally enforceable agreement with a buyer to…
Q: Wildhorse Corporation has the following selected transactions during the year ended December 31,…
A: The net worth of net identifiable assets acquired less the purchase payment paid is how goodwill is…
Q: Calculate the break-even point in units and sales dollars with no change in sales. (Round…
A: The breakeven point is the point where a company's total cost is equal to the total revenue. Thus, a…
Q: Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four…
A: The acquisition of assets like equipment is a capital expenditure. The acquisition of assets is not…
Q: Icebreaker Company (a U.S.-based company) purchases materials from a foreign supplier on December 1,…
A: A forward contract is a derivative agreement that may be customized between two parties to purchase…
Q: 2) Prepare a Flexible Budget Puget Sound Divers is a company that provides diving services such as…
A: Flexible budget :— This budget is prepared by multiplying variable amount per activity unit by…
Q: The Gourmand Cooking School runs short cooking courses at its small campus. Management has…
A: Variances are the differences between the actual values and budgeted values. If the budgeted values…
Q: Activity data have been supplied for the following two products: Number of units produced per year…
A: The overhead costs are the indirect costs incurred for the production. The overhead is applied to…
Q: Excellence Auto Inc. (EAI) has 150,000 shares issued in total. Assume that on January 1, 2021, Power…
A: Cost method of investments accounting used when a company do not have significant influence on…
Q: The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given…
A: Variance analysis depicts the difference arises between the actual result of the business…
Q: SW Company provides the Equity & Liability information below for analysis. SW Company had net and…
A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…
Q: Flint Inc. Comparative Balance Sheet As of December 31, 2025 and 2024 Cash Accounts receivable…
A: Lets understand the basicsA cash flow statement gives information on all cash inflows a business…
Q: Engineering Co. provided the following information for their business year ending June 30th, 2021.…
A: In many different business domains, including revenue, expenses, production costs, and other key…
Q: Fanning Freight Company owns a truck that cost $50,000. Currently, the truck's book value is…
A: The relevant cost analysis is performed to compare the different alternatives available with the…
Q: o. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount…
A: Accumulated depreciation is the total amount of depreciation expense allocated to a particular asset…
Q: The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1…
A: The objective of the question is to calculate the net cash flow from operating activities for the…
Q: Crane and Company had the following (selected) transactions during 2020: Important Note: Crane…
A: Journal entries in accounting are a documentation of the financial dealings that a company has…
Q: Shaq Company operates with three segments: Louisiana, Orlando, and Los Angeles. Data regarding…
A: Lets understand the basics.Return on investment ratio shows how much segment net income is generated…
Q: Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are…
A: Hi studentSince there are multiple subparts asked, we will answer only first three subparts.Return…
Q: Throughput Justin Fawber is a divisional manager within GPS Guidance Systems. Fawber is concerned…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: PERFORMANCE REPORT FOR PROFIT CENTERS Watson Clothiers, a retailer specializing in men's and ladies'…
A: A financial statement that displays the profitability of the company for a certain reporting period…
Q: Calculate the Gross and the Net Operating Cycle for Vishal & Co. Ltd. using the following…
A: Gross Operating Cycle and Net Operating Cycle are the techniques used to measure the efficiency of…
Q: Golf Apparel has two classes of stock authorized: 5%, $10 par preferred, and $1 par value common.…
A: The journal entries are prepared to record the transactions on regular basis. The dividend is…
Q: July 1. The following assets were received from Jolene Upton: Cash, $19,000; Accounts Receivable,…
A: A journal entry is made to record the financial transaction in the books of accounts.T-account: The…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Lets understand the basics.Management prepares budget in order to estimate future profit and…
Q: A company pays $5, 400 for maintenance in the current period. Record the transaction
A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Mammoth Publishing, Incorporated owns a weekly magazine called “Nova Health,” and sells annual subscriptions for $86. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 30% discount coupon on its other weekly magazine called “Fishing & Camping,” which has a list price of $70 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed.\\n\\nRequired:\\n(a) How many performance obligations are in a single subscription contract?\\n\\n(b) Prepare the journal entry to account for one new subscription of “Nova Health,” clearly identifying the revenue or deferred revenue associated with each performance obligation.Mammoth Publishing, Inc. owns a weekly magazine called “Nova Health,” and sells annual subscriptions for $96. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called “Fishing & Camping,” which has a list price of $84 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed.Required:(a) How many performance obligations are in a single subscription contract?(b) Prepare the journal entry to account for one new subscription of “Nova Health,” clearly identifying the revenue or deferred revenue associated with each performance obligation. of performance obligations: 2 Journal entry worksheet Note: Enter debits before credits. Transaction General Journal Debit Credit 1A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $135. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the companyoffered new subscribers the ability to pay $130 for an annual subscription that also would include a coupon toreceive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of acarriage ride is $125 per hour. The company estimates that approximately 30% of the coupons will be redeemed.Required:1. How much revenue should Manhattan Today recognize upon receipt of the $130 subscription price?2. How many performance obligations exist in this contract?3. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue ordeferred revenue associated with each performance obligation.
- A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $135. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $130 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $125 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Required: How much revenue should Manhattan Today recognize upon receipt of the $130 subscription price? How many performance obligations exist in this contract? Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $135. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $130 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $125 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $135. Customers prepay their subscriptions and receive 260 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $130 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $125 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Prepare the journal entry to recognize sale of 10 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation. The correct answer is: DR Cash - $1,300 CR Deferred Revenue - discount coupon $130 CR Deferred Revenue - subscription $1,170 ...but I have no idea how "they" came up with the deferred revenue costs. I've asked my professor, but since it's an online summer course, they're not into…
- A New York City daily newspaper called “Manhattan Today” sells annual subscriptions for a fee of $216. To attract more subscribers, the company offered a package to new subscribers. The $210 cost of the package includes: an annual subscription and a coupon for a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $200 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Required: How much revenue should Manhattan Today recognize upon receipt of the $210 subscription price? How many performance obligations exist in this contract? Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2019, 10 million boxes of dates are sold at $0.30 each. Eight million coupons are redeemed during 2019. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2019. Required: 1. Prepare the journal entries related to the sale of dates and the premium plan in 2019. 2. Show how the preceding items would be reported on the December 31, 2019, balance sheet.Cyma Cola Company sells boxes of Cola for $10 per box. In addition, Cyma Cola offers its customers a drinking mug in exchange for $1 and 10 Cola box tops. The cost of drinking mug is $3, and the company estimates that customers will redeem 60 percent of the box tops. The premium offer began in June 2019. During 2019 Cyma Cola Company purchased 20,000 Drinking Mugs at $2 for each, and sold 300,000 boxes of Cola for $10 per box, and redeemed 60,000 box tops. Compute Premium Liability in 2019.
- luna Company sold 700,000 boxes of “puto” mix under a new sales promotional program. Each box contains one coupon, which if submitted with P40, entitles the customer to a kitchen knife. The company pays P60 per knife and P5 for handling and shipping. It estimates that 70% of the coupons will be redeemed, even though only 250,000 coupons had been processed during 2020. How much should luna report as liability for unredeemed coupons at December 31, 2020?During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. Compute for the liability for the unredeemed coupons.During 2021, SUGA Company sold 485,000 boxes of cereals under a new sales promotional program. Each box contains one coupon, which entitles the customer to a premium that cost the company ₱75. Five coupons plus a remittance of ₱20 must be presented by the customer to receive a premium. SUGA estimated that 85% of the coupons will be redeemed. Actual premiums redeemed were 5,000 units. Additional information disclosed that ₱10 per premium is incurred for storage and distribution. Compute for the premium expense for the year.