*Application Problem 4-3A a1, b Chow Publications Inc. is a publicly traded media company focused on products for the home chef market. The company...
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*Application Problem 4-3A a1, b Chow Publications Inc. is a publicly traded media company focused on products for the home chef market. The company publishes a monthly magazine that can be purchased at newsstands and is available for annual subscriptions
(either paper copy or digital copy). Chow Publications sells annual subscriptions for $54.00 (paper copies) or $43.20 (digital copies). Subscriptions are paid in advance and are non-cancellable. Chow sold for cash 115,100 subscriptions on December 1, 2020, of which
30% were dlgltal subscriptions. Single issues can be purchased on newsstands. Chow Publications uses various magazine distributors across Canada to rack it at newsstands, charging the newstands $5.40 per copy. Normally 23,900 copies are sent out each
month, with 15% of these being returned unsold. Of the 23,900 magazines sent out in December 2020, all were sold on account, and none of the returned magazines are expected to be resold and, as a result, are sent to recycling.
Unsold nagazines are returned by newstands in the following month. Deterrnlne how much revenue Chow Publications would be able to recognize In December 2020. (Round the per magazine price to 3 decimal places, e.g. $4.965 and final answers to a decimal places, e.g. 125.) Revenue through subscriptions $ Revenue other than through subscriptions [ ‘ Prepare the required summary journal entries for the contract based on your analysis in part “a.” (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.) one Account 1166 and Explanation Debit aedit
if ¢fl| ll ll
i H H
/:l| ii
i ll, 7, H (To record revenue through
subscriptions) l ll H
l ll ll
l ll H (To record sales other than
through subscriptions)

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