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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 3
Determining and Recording the Financial Statement Effects of Unearned Subscription Revenue
Reader's Digest Association is a publisher of magazines, books, and music collections. The following note is from a recent annual report:
Assume that Reader's 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, and NE for no effect) of transactions (a) and (b).
2. Using the information given, prepare the journal entries that would be recorded in 2012 and 2013.
Reader's Digest Association is a publisher of magazines, books, and music collections. The following note is from a recent annual report:
Assume that Reader's 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, and NE for no effect) of transactions (a) and (b).
2. Using the information given, prepare the journal entries that would be recorded in 2012 and 2013.
Explanation
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Verified
(1)
Indicate the accounts, amounts, and...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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