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Netflix Subscription Scenario: Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value Month January February March Revenue Recognition 15 Total 180 # of Subscriptions Sold 5000 5000 5000 15000 Monthly Revenue 75,000 150,000 225,000 Deferred Revenue 825,000 1,575,000 2,400,000

Netflix Subscription Scenario: Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value Month January February March Revenue Recognition 15 Total 180 # of Subscriptions Sold 5000 5000 5000 15000 Monthly Revenue 75,000 150,000 225,000 Deferred Revenue 825,000 1,575,000 2,400,000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 16P: Premium Obligation Yummy Cereal Company is offering one toy shovel set for 15 box tops of its...
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Calculate what the revenue would be on the Income Statement for March Calculate what the deferred revenue would be on the Balance Sheet for March Explain what happens to revenue and deferred revenue as the months' progress. Explain when revenue can be recognized and why.
Netflix Subscription Scenario: Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value Month January February March Revenue Recognition 15 Total 180 # of Subscriptions Sold 5000 5000 5000 15000 Monthly Revenue 75,000 150,000 225,000 Deferred Revenue 825,000 1,575,000 2,400,000
Transcribed Image Text:Netflix Subscription Scenario: Assumptions 5000 Netflix subscriptions were sold in January, February, and March. A Netflix subscription is $15.00 per month. Each Subscriber paid the full year's subscription. What would the Revenue for March be? What would get recorded as Deferred Revenue for March? Subscription Value Annual Subscription per Month Value Month January February March Revenue Recognition 15 Total 180 # of Subscriptions Sold 5000 5000 5000 15000 Monthly Revenue 75,000 150,000 225,000 Deferred Revenue 825,000 1,575,000 2,400,000
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