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+--- Thread: Help with Accounting Study Guide based on Defered Revenues? (/thread-140509.html)
Help with Accounting Study Guide based on Defered Revenues? - ChaoticAngel911 - 04-17-2014 05:29 AM
In November and December, 2004, Paul Company, a newly organized magazine
publisher received $60,000 for 1,000 subscriptions (each subscription lasts for 3 years) to
a new monthly magazine at $20 per year, starting with the first issue in March, 2005.
REQUIRED:
Fill in the chart below relating to the amount of revenue to be recorded in each year assuming a year-end of December 31.
Revenue Unearned Revenue at December 31
2004
2005
2006
2007
Answer:
2004 Revenue: $0 Unearned Revenue: $60,000
2005 Revenue: $16,667 Unearned Revenue: $43,333
2006 Revenue: $20,000 Unearned Revenue: $23,333
2007 Revenue: $20,000 Unearned Revenue: $3,333
I do not understand how the study guide came up with the following answers. Can someone please explain? Thank you!
- Joe - 04-17-2014 05:42 AM
Check out http://www.investlikeme.blogspot.com. There is an article on getting started in the market and how to read a stock profile. The author also shares his own personal portfolio which you can follow along with on twitter.