Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
Total Sales = No. of Subscription Sold × Advance Price of Subscription
= 500 × $60 = $30,000
August Month Received Amount = (No. of Subscriber × Paid Amount) ÷ (1÷12
)
=(350×$60)÷1÷12
= $21,000 ÷ 12
= $1,750
Balance Sheet
Particular Assets($) Liabilities($) Stockholder Equity($) Income($)
Cash 36,000
Unearned revenue 36,000
Earned revenue -1,800 -1,800
Total 36,000 34,200 -1,800
Income Statement
Income Amount ($) Expense ($) Amount ($)
Earned Revenue -1,800
Tough.. Just write a little stick figure guy saying I dunno. :) Hope I helped!
the producer in this case sujid is gaining a little more money because then when the profit is increased he will get a little less money because then the people will buy it but the money will be less for the producer(s)
