Hubbard Street Dance Company Sells Subscriptions for Its Monthly Dance

question 103

Essay

Hubbard Street Dance Company sells subscriptions for its monthly dance performances.The company received annual subscription payments on November 15,2018 for performances that will take place during 2019 in the amount of $120,000.The subscription payments will be earned equally throughout each month.
Required:
Part a.Describe how the subscription payments should be reported in the balance sheet and income statement on December 31,2018
Part b.Describe how the subscription payments should be reported in the balance sheet and income statement on January 31,2019.
Part c.Prepare the journal entry for the receipt of annual subscription payments on November 15,2018.
Part d.Prepare the required adjusting entry for the subscription payments on January 31,2019.

Gain insights into the practical challenges of implementing performance evaluation systems within organizations.

Comprehend the limitations of relying solely on financial performance measures for decision-making.

Understand the concept and application of standard costing in manufacturing.

Calculate and analyze material variances including price and quantity variances.

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Definitions:

Trusts

Legal arrangements where one person, the trustee, holds property for the benefit of another, the beneficiary, according to the terms of the trust document.

Customary Compensation

Refers to the typical or usual payment made for a service or to fulfill a contractual obligation.

Tax Audit

An examination or review by tax authorities to verify the accuracy of taxes filed by an individual or organization.

Expressly State

To explicitly specify or declare something in a clear and unequivocal manner.