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Afina-wow [57]
4 years ago
11

Pharoah Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. Duri

ng November 2022, Pharoah sells 6,900 subscriptions for cash, beginning with the December issue. Pharoah prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end. Prepare the entry in November for the receipt of the subscriptions.
Business
1 answer:
never [62]4 years ago
3 0

Answer and Explanation:

The Journal entry is shown below:-

On  November 2022

Cash Dr, $193,200            (6,900 × $28)

               To Unearned Subscription Revenue $193,200

(Being the receipt of the subscriptions is recorded)

Therefore to record the receipt of the subscriptions we simply debited the cash as it increased the assets and we credited the unearned subscription revenues as increased the liability so that the correct posting could be done

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It would be an example of advertising.

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I hope this helped!

5 0
3 years ago
Read 2 more answers
When a company purchases another company and the purchase price is greater than the fair value of the net assets acquired, this
34kurt

Answer:

Goodwill

Explanation:

Goodwill is an intangible asset, reported on the balance sheet asset side. It is used yearly for the impairment tests.

When the company purchase another company and its purchase price is more than the fair value of the net asset so the excess amount would be called as a goodwill

The fair value of the net asset is come from subtracting the

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6 0
3 years ago
The Dabble Corporation wants to begin exporting its products. The company needs advice about how to get started, as well as trad
Nana76 [90]

Answer:

Export Assistance Cente

Explanation:

Each U.S. Export Assistance Center is staffed by professionals from the SBA, the U.S. Department of Commerce, the U.S. Export-Import Bank, and other public and private organizations. Together, their mission is to provide the help you need to compete in today's global marketplace. Your local U.S. Export Assistance Center is your one-stop shop, designed to provide export assistance for your small- or medium-sized business.

7 0
3 years ago
Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are
nika2105 [10]

Answer: $480

Explanation:

The net cash inflow from operating activities on Packard's statement of cash flows for Year 2 will be calculated thus:

Revenue earned = $1000

Less : Expenses paid = ($520)

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8 0
3 years ago
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Arlecino [84]

Answer:

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Explanation:

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