Examlex

Solved

Hubbard Street Dance Company Sells Subscriptions for Its Monthly Dance

question 72

Essay

Hubbard Street Dance Company sells subscriptions for its monthly dance performances.The company received annual subscription payments on November 15,2015 for performances that will take place during 2016 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 31,2015
Part b.Describe how the subscription payments should be reported in the balance sheet and income statement on January 31,2016.
Part c.Prepare the journal entry for the receipt of annual subscription payments on November 15,2015.
Part d.Prepare the required adjusting entry for the subscription payments on January 31,2016.


Definitions:

Groundwater Contamination

The pollution of groundwater systems by pathogens, chemicals, and other harmful substances, compromising water quality and ecosystem health.

Water Table Slope

The gradient or incline of the water table, indicating the direction and rate at which groundwater flows.

Flowing Groundwater

refers to the movement of water through the pores and spaces in soil and rock beneath the Earth's surface.

Plume

1. A rising mass of mostly solid mantle material, thought to be the causal mechanism of a hot spot. 2. A mass of groundwater contamination that spreads out away from the source.

Related Questions