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    Ia2 Prob 1-24 & 25

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    maryani
    Anette Video Company sells 1- and 2-year video subscriptions that are collected in advance. Sales and cancelations are provided for 2020 and 2021. The document also provides information on subscription expirations by year. This information can be used to calculate unearned subscription revenue and subscription revenue for 2021. Farr Company sells products in reusable containers that customers pay a deposit for. Information is provided on the number of containers held by customers from previous years and delivered in 2020, as well as the number returned in 2020. This information can be used to calculate the liability for deposits on December 31, 2020.

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    Ia2 Prob 1-24 & 25

    Uploaded by

    maryani
    786 views2 pages
    Anette Video Company sells 1- and 2-year video subscriptions that are collected in advance. Sales and cancelations are provided for 2020 and 2021. The document also provides information on subscription expirations by year. This information can be used to calculate unearned subscription revenue and subscription revenue for 2021. Farr Company sells products in reusable containers that customers pay a deposit for. Information is provided on the number of containers held by customers from previous years and delivered in 2020, as well as the number returned in 2020. This information can be used to calculate the liability for deposits on December 31, 2020.

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    ia2 prob 1-24 & 25

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    ia2 prob 1-24 & 25

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    Anette Video Company sells 1- and 2-year video subscriptions that are collected in advance. Sales and cancelations are provided for 2020 and 2021. The document also provides information on subscription expirations by year. This information can be used to calculate unearned subscription revenue and subscription revenue for 2021. Farr Company sells products in reusable containers that customers pay a deposit for. Information is provided on the number of containers held by customers from previous years and delivered in 2020, as well as the number returned in 2020. This information can be used to calculate the liability for deposits on December 31, 2020.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    786 views2 pages

    Ia2 Prob 1-24 & 25

    Uploaded by

    maryani
    Anette Video Company sells 1- and 2-year video subscriptions that are collected in advance. Sales and cancelations are provided for 2020 and 2021. The document also provides information on subscription expirations by year. This information can be used to calculate unearned subscription revenue and subscription revenue for 2021. Farr Company sells products in reusable containers that customers pay a deposit for. Information is provided on the number of containers held by customers from previous years and delivered in 2020, as well as the number returned in 2020. This information can be used to calculate the liability for deposits on December 31, 2020.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Problem 1-24 (AICPA Adapted)

    Anette Video Company sells 1- and 2-year subscriptions for the video-of-the-month
    business.

    Subscriptions are collected in advance and credited to sales. An analysis of the recorded
    sales activity revealed the following:
    2020 2021
    Sales 420,000 500,000
    Less cancelations Net sales 20,000 30,000
    Net Sales 400,000 470.000

    Subscription expirations:
    2020 120,000
    2021 155,000 130,000
    2022 125,000 200,000
    2023 _______ 140,000
    400,000 470,000

    1. On December 31, 2021, what amount should be reported as unearned subscription


    revenue?
    a. 495,000 b. 470,000 c. 465,000 d. 340,000

    2. What amount should be reported as subscription revenue for 2021?

    a. 175,000 b. 305,000 c. 285,000 d. 250,000

    Problem 1-25 (AICPA Adapted)


    Farr Company sells products with reusable and expensive each containers. The customer
    is charged container delivered and receives a refund for each contains returned within two
    years after the year of delivery.

    Containers held by customers on January 1, 2020 from deliveries in:

    2018 75,000
    2019 215,000 290,000

    Containers delivered in 2020 390,000

    Containers returned in 2020 from deliveries in:


    2018 45,000
    2019 125,000
    2020 143,000 313,000

    What is the liability for deposits on December 31, 2020?

    a. 247,000 b. 292,000 c. 337,000 d. 367,000

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