Modern Woman magazine has received cash subscriptions on April 1, 20X1, in the amount of $3,600,000 for the next three years. Their year end is December 31, 20X1. Magazine delivery occurs monthly and started on April 1, 20X1. These were the only subscription sales for the year. Answer the following questions:
a. What amount of cash should be reported for the year on the statement of cash flows?
b. What amount of subscriptions revenue should be reported on the statement of earnings ?
c. What amount would be reported as unearned subscriptions revenue on the statement of financial position as of December 31, 20X1?

Question

Modern Woman magazine has received cash subscriptions on April 1, 20X1, in the amount of $3,600,000 for the next three years. Their year end is December 31, 20X1. Magazine delivery occurs monthly and started on April 1, 20X1. These were the only subscription sales for the year. Answer the following questions: 
a. What amount of cash should be reported for the year on the statement of cash flows?
 b. What amount of subscriptions revenue should be reported on the statement of earnings ?
 c. What amount would be reported as unearned subscriptions revenue on the statement of financial position as of December 31, 20X1?

Quizplus · Accepted Answer

The Answer of Modern Woman magazine has received cash subscriptions on April 1, 20X1, in the amount of $3,600,000 for the next three years. Their year end is December 31, 20X1. Magazine delivery occurs monthly and started on April 1, 20X1. These were the only subscription sales for the year. Answer the following questions: 
a. What amount of cash should be reported for the year on the statement of cash flows?
 b. What amount of subscriptions revenue should be reported on the statement of earnings ?
 c. What amount would be reported as unearned subscriptions revenue on the statement of financial position as of December 31, 20X1?

Modern Woman Magazine Has Received Cash Subscriptions on April 1