Required information [The following information applies to the questions displayed below.] The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows: Revenues Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided. Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in 2022.

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
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 13P
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Required information
[The following information applies to the questions displayed below.]
The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows:
Revenues
Revenues from our magazine subscription services are deferred initially
and later recognized as revenue as subscription services are provided.
Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided
$224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in
2022.
Required:
1. Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter
any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.)
Transaction
(a)
(b)
Cash
Assets
460,000,000
= Deferred Revenue
=
=
X Answer is not complete.
Liabilities
460,000,000
(224,000,000)
(236,000,000)
ΟΙΙΟΙΟ
+
+
+
Stockholders' Equity
Service Revenue
Service Revenue
N
Transcribed Image Text:! Required information [The following information applies to the questions displayed below.] The Riesen Publishers (TRP) is a publisher of magazines. Its accounting policy for subscriptions follows: Revenues Revenues from our magazine subscription services are deferred initially and later recognized as revenue as subscription services are provided. Assume TRP (a) collected $460 million in 2021 for magazines that will be distributed later in 2021 and 2022, (b) provided $224 million of services on these subscriptions in 2021, and (c) provided $236 million of services on these subscriptions in 2022. Required: 1. Using the information given, indicate the accounts, amounts, and accounting equation effects of transactions (a), (b), and (c). (Enter any decreases to assets, liabilities, or stockholders equity with a minus sign. Enter your answers in whole dollars.) Transaction (a) (b) Cash Assets 460,000,000 = Deferred Revenue = = X Answer is not complete. Liabilities 460,000,000 (224,000,000) (236,000,000) ΟΙΙΟΙΟ + + + Stockholders' Equity Service Revenue Service Revenue N
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