On October 1, 2010, $36,000 of Annual Magazine Subscriptions Were

question 14

Essay

On October 1, 2010, $36,000 of annual magazine subscriptions were sold by Motocross Monthly Magazines. The subscribed magazines are delivered on the first day of each month beginning on October 1, 2010. The total cost of the subscribed magazines is $15,000 or $1,250 per month. Determine the amount of revenue and the cost of the magazines to be recognized during 2010 and 2011, respectively. How much profit will the company recognize during 2010 and 2011?

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Definitions:

Interstate Commerce

Economic activity or trade that crosses state lines within the United States, regulated by federal laws.

First Amendment

An amendment to the U.S. Constitution that prohibits the government from making laws infringing on the freedom of speech, religion, press, assembly, and petition.

Criminal Prosecution

The process by which a legal entity, typically the government, charges an individual with a crime and seeks to prove their guilt in a court of law.

Presentence Investigation Report

A report prepared by a probation officer to assist a judge in sentencing, including information about the defendant’s background and details of the offender's life and history.