On January 1, Hi-r-Ed Wired Connection opened for business across the street from Northside University. The company charges students a monthly fee of $20 and $1 for each hour they are online. During January, 500 students signed up for the service, and each will have until the fifth of the following month to pay the monthly fee. By the end of January, 200 students had paid the monthly fee. Student usage, payable at the time connected, was 4,500 hours during January. Assume that Hi-r-Ed uses the accrual basis of accounting. Required: 1. Prepare the Revenues section of Hi-r-Ed's income statement for the month of January. Hi-r-Ed Wired Connection Income Statement (partial) For the Month Ended January 31 Revenues: Membership fees Online usage fees Total revenue 2. Prepare the Cash Receipts section of Hi-r-Ed's statement of cash flows for the month of January. Hi-r-Ed Wired Connection Statement of Cash Flows (partial) For the Month Ended January 31 Cash received from: Membership fees Online usage fees 3. In addition to the Cash account, what other account will appear on Hi-r-Ed's balance sheet at the end of January? What amount will be in this account?

On January 1, Hi-r-Ed Wired Connection opened for business across the street from Northside University. The company charges students a monthly fee of $20 and $1 for each hour they are online. During January, 500 students signed up for the service, and each will have until the fifth of the following month to pay the monthly fee. By the end of January, 200 students had paid the monthly fee. Student usage, payable at the time connected, was 4,500 hours during January. Assume that Hi-r-Ed uses the accrual basis of accounting. Required: 1. Prepare the Revenues section of Hi-r-Ed's income statement for the month of January. Hi-r-Ed Wired Connection Income Statement (partial) For the Month Ended January 31 Revenues: Membership fees Online usage fees Total revenue 2. Prepare the Cash Receipts section of Hi-r-Ed's statement of cash flows for the month of January. Hi-r-Ed Wired Connection Statement of Cash Flows (partial) For the Month Ended January 31 Cash received from: Membership fees Online usage fees 3. In addition to the Cash account, what other account will appear on Hi-r-Ed's balance sheet at the end of January? What amount will be in this account?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 18E: On December 1, 2019, AwakcAllNight Inc. sells 5,000 super caffeinated candy bars to Campus Grocers....

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