(Answered) Condnast is a publisher of magazines its accounting policy

Accounting

CondNast is a publisher of magazines. Its accounting policy for subscriptions follows:

Revenues

Sales of our magazine subscriptions are deferred (as unearned revenue) and recognized as revenues proportionately over the subscription period.

Assume that CondNast (a) collected $ 420 million in 2015 for magazines that will be delivered later in 2015 and 2016, and (b) delivered $ 204 million worth of magazines on these subscriptions in 2015.

Required:

1. Using the information given, indicate the accounts, amounts, and accounting equation effects (1 for increase, 2 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 2015 and 2016.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91528706
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - stewart company purchases store supplies for

Question - Stewart Company purchases store supplies for $2,700, paying 20% of the amount due in cash and agreeing to pay the balance at a later date. Required: What is the effect of this transaction on individual asset a ...

Question - this needed to be solved likedirect materials

Question - This needed to be solved like Direct materials Inventory beginning balance- $184 Direct materials purchased- $640 Direct materials used- $675 Total Manufacturing overhead costs- $788 Variable manufacturing ove ...

Question - larry recently invested 23000 tax basis in

Question - Larry recently invested $23,000 (tax basis) in purchasing a limited partnership interest. His at-risk amount is also $23,000. In addition, Larry's share of the limited partnership loss for the year is $2,150, ...

Part abackgroundsaturn petcare australia and new zealand

Part A Background: Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their first m ...

Question as a small business owner in todays

Question: As a small business owner in today's economy: • What three financial reports would you use on a regular basis? • What information would you find on each statement? • What decisions might each statement help you ...

Question - tippah antiques uses the periodic inventory

Question - Tippah Antiques uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Tippah's records for the year 2016: beginning balance in ...

Question - greg corp prepares its financial statements

Question - Greg Corp. Prepares its financial statements under U.S. GAAP Tina prepares its financial statements under IFRS. You have gained the following insights: Greg and Tina are the same company except they use differ ...

Question instructions provide complete answers to the

Question: Instructions: Provide complete answers to the following two problems: 1. Prepare the General Ledger journal entries for the General Fund for the Village of Bath for the year ended December 31, 2017. • The budge ...

Question - alpha corp was organized on january 2 2018

Question - Alpha Corp was organized on January 2, 2018. During the first year of operation, alpha issued 100,000 shares of $1 par value common stock at a price of $50 cash per share. On December 31, 2018, alpha reported ...

Question - at the beginning of the school year priscilla

Question - At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert