Answer:
A. None
B. Interest revenue $1,500
C. Sales revenue $32,000
D. None
E. Sales revenue $16,000
F. None
G. None
H. None
I. None
J. Revenue tickets sales $10,000,000
K. None
L. $96,000
M. 300
Explanation:
Indication for the revenue account title and amount for each transaction
a. Since we were told that Subscription will begins in next fiscal this means that Revenue amount will be earned when subscription begins in the next fiscal year.
b. Annual interest = $1,500
Interest revenue earned in September = 1,500 / 12
Interest revenue earned in September = $125
c. Based on the information given the amount of Revenue to be recognized for cash equivalent sales value will be $32,000
d. Since we were told that PVH has just received the order in the month of September this means that no revenue can be recognized.
e. Revenue to be recognized = 1,000 * $16
Revenue to be recognized = $16,000
f. Bssed on the information given the revenue amount has already been recognized when the order made is satisfied.
g. Based on the information given the payment that was made is for travel in January which means that revenue is to be recognized only when travel takes place. Hence, No revenue will be recognized in September.
h. Based on the information given the Issue of common stock will not be a sales transaction.
i. Based on the information given the amount of Cash received in the month of September is Únearned revenue reason been that revenue will be recognized l when football game is been played.
j. Based on the information given out of 7 games, first game is played, which means that the Revenue amount to be recognized will be :
Revenue= 70,000,000/ 7
Revenue = $10,000,000
k. Based on the information advance amount for future construction was received which is 'Unearned Revenue' therefore No revenue is earned yet.
l. Since It is sales on account the evenue to be recognized will be the amount of $96,000
m. Revenue to be recognized will be the amount of $300 because payment was made through credit card
Therefore the summary of Revenue account affected and Amount of Revenue earned in September is :
Revenue account affected; Amount of Revenue earned in September
A. None
B. Interest revenue $1,500
C. Sales revenue $32,000
D. None
E. Sales revenue $16,000
F. None
G. None
H. None
I. None
J. Revenue tickets sales $10,000,000
K. None
L. $96,000
M. 300
.
