MoGraw Hill Connect Gh 7 Homework The following information applies to the quest

ID: 2521113 • Letter: M

Question

MoGraw Hill Connect Gh 7 Homework The following information applies to the questions displayed below Evans Ltd. publishes a moethly retail one-year subscriptions and received payments in advance from all new subscribers Only 67 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with newsletter for retail marketing menagers and requires its subscoribers to pay $50 in edvance for a one-year subscription During the month of August 20M%, Evans Lid. sold 200 500 points b, Calculate the amount of subscnption revenue earned by Evans Ltd. dmgthe year ended December 31, 2016, forthese 200 subscrotons Revenue eamed during August Total subscriotion nevenue eamed during 2017 8 4 5 6 8 9 3

Explanation / Answer

Evans Ltd

Calculation of the amount of subscription revenue earned by Evans Ltd during the year ended December 31, 2016 for these 200 subscriptions:

Revenue earned during August

$279

Revenue earned from September - December

$3,333

Total subscription revenue earned during 2016

$3,612

Computations -

Revenue earned during August –

Cash received = 200 x $50 = $10,000

Unearned revenue for August = $10,000

Revenue recognized = $10,000 x 1/12 x 67/200 = $279

Since, only 67 of 200 subscriptions paid their fees in time to receive the August newsletter.

Hence, revenue earned during August = $279

Revenue earned from September – December:

= 4 months revenue

=10,000 x 4/12 = $3,333