Evaluate the amount of subscription revenue

Reference no: EM135591

Evans Ltd. publishes a monthly newsletter for retail marketing managers and needs its subscribers to pay $50 in advance for a one-year subscription. Through the month of September 2010, Evans Ltd. Sold 200 one-year subscriptions and received payments in advance from all new subscribers. Only 120 of the new subscribers paid their fees in time to get the September newsletter; the other subscriptions began with the October newsletter.

a. Use the horizontal model (or write the journal entries) to record the effects of the subsequent items:

1. Subscription fees received in advance in September 2010.

2. Subscription revenue earned in September 2010.

b. Evaluate the amount of subscription revenue earned by Evans Ltd. through the year ended December 31, 2010, for these 200 subscriptions.

Reference no: EM135591

Questions Cloud

Compare all types of evidence : For every situation, show whether the first or second type of evidence is more reliable. Give a rationale for your choice.

Equity of existing stockholders in the corporation : What information on this option plan could be shown in the financial statements of Recycling Corporation at December, 2010 describe.

Evaluate return on investment : Supplementary office equipment costing $600 was purchased on credit from Discount Computer Corporation.

Evaluate supplementary net income : Determine the 2004 ROI for each division and Rashid, manager of Division A, is supposing a proposal to invest 250 million rials for modern equipment.

Evaluate the amount of subscription revenue : Use the horizontal model to record the effects of the subsequent items Subscription fees received in advance in September 2010.

Industry significantly increases advertising expenditures : Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry.

Two alternative recreation projects : A county is considering using a piece of park land for one of two alternative recreation projects. Project S would require construction costs of $2 million (year 0) and generate net benefits of $1 million per year for 10 years.

Calculate the breakeven output quantities : Using a wholesale price of $4 per case in each state, calculate the breakeven output quantities for each alternative.

Values of the real interest rate : Find the equilibrium values of the real interest rate, consumption, investment, and the price level.

User Account

All Pages