Scribd
Upload
3K views1 page

Deferred Revenue Calculation Guide

Hart Company publishes a directory semi-annually on April 15 and October 15. Subscriptions received after March 31 and September 30 are deferred to the next publication. Cash from subscriptions is received evenly over the year and credited to deferred revenue. On January 1, deferred revenue was $1,500,000 and $7,200,000 cash was received over the year. The amount of deferred revenue on December 31 is $3,300,000. Weaver Company sells magazine subscriptions for 1, 2, or 3 years. On January 1, subscriptions collected in advance was $1,700,000. Cash receipts were $2,100,000 and $1,500,000 of revenue was credited. The

Uploaded by

maryani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
3K views1 page

Deferred Revenue Calculation Guide

Hart Company publishes a directory semi-annually on April 15 and October 15. Subscriptions received after March 31 and September 30 are deferred to the next publication. Cash from subscriptions is received evenly over the year and credited to deferred revenue. On January 1, deferred revenue was $1,500,000 and $7,200,000 cash was received over the year. The amount of deferred revenue on December 31 is $3,300,000. Weaver Company sells magazine subscriptions for 1, 2, or 3 years. On January 1, subscriptions collected in advance was $1,700,000. Cash receipts were $2,100,000 and $1,500,000 of revenue was credited. The

Uploaded by

maryani
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Problem 1-22 (AICPA Adapted)

Hart Company sells subscriptions to a specialized directory that is published semi-annually


and shipped to subscribe on April 15 and October 15.

Subscriptions received after the March 31 and September 30 cut-off dates are held for the
next publication.

Cash from subscribers is received evenly during the year and is credited to deferred
revenue from subscriptions
Deferred revenue from subscriptions - January 1 1,500,000
Cash receipts from subscribers during the current year 7,200,000

What amount should be reported as deferred revenue from subscription on December 31?
a. 1,800,000 b. 3,300,000 c. 3,600,000 d. 5,400,000

Problem 1-23 (AICPA Adapted)

Weaver Company sells magazine subscriptions for a 1-year, 2-year or 3-year period.

Cash receipts from subscribers are credited to magazine subscriptions collected in


advance and this account had a balance of P1,700,000 on January 1, 2020.
The entity provided the following information for the year ended December 31, 2020:

Cash receipts from subscribers 2,100,000


Magazine subscriptions revenue credited on December 31, 2020 1,500,000
On December 31, 2020, what amount should be reported as the balance for magazine
subscriptions collected in advance?
a. 1,900,000 b. 2,300,000 c. 1,400,000 d. 2,100,000

You might also like