media outlets such as espn and fox sports often have web site that provide in depth coverage of news and events. portions of these web sites are restricted to members who pay a monthly subscription to gain access to exclusive news and commentary. these web sites typically offer a free trial period to introduce viewers to the web site. assume that during a recent fiscal year, espn.com spent $1,800,000 on a promotional campaign for the espn.com web site that offered two free months of service for new subscribers. in addition assume the following information:# average mo new customer stays with the 25 months$10.00$2.00determine the number of new customer accounts needed to break even on the cost of the promotional campaign. in forming your answer, 1. treat the cost of the promotional campaign as a fixed cost, and 2. treat the revenue less variable cost per account for the subscription period as the unit contribution margin.

Bodow is an entertainment complex located in Trinidad & Tobago. It offers various activitiessuch as music, rides, slides, and souvenir shopping, and customers pay a fixed fee to enter.The complex has been in operation for the past seven years and remains open throughout theyear. However, weather-related issues often lead to a significant decrease in customerattendance, usually by 50%, on approximately 30 days each year.Bodow has experienced substantial success, with customer numbers increasing byapproximately 15% annually. Sales at Bodow are categorized as cash sales and credit cardsales. All ticket sales are recorded on a computer, including the amount of each sale and thenumber of tickets issued. This information is electronically transferred to the accounts office.Cash collected from each ticket office is counted by two accounts clerks and two securityguards before being banked daily. The total cash from each ticket office is reconciled with thesales information transferred from…

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Mammoth Publishing, Inc. owns a weekly magazine called “Nova Health,” and sells annual subscriptions for $96. Customers prepay their subscription fee and receive 52 issues starting in the following month. The company also offers new subscribers a 25% discount coupon on its other weekly magazine called “Fishing & Camping,” which has a list price of $84 for an annual subscription. Mammoth estimates that approximately 10% of the discount coupons will be redeemed.Required:(a) How many performance obligations are in a single subscription contract?(b) Prepare the journal entry to account for one new subscription of “Nova Health,” clearly identifying the revenue or deferred revenue associated with each performance obligation.     of performance obligations: 2   Journal entry worksheet Note: Enter debits before credits.                 Transaction General Journal Debit Credit 1

A New York City daily newspaper called “Manhattan Today” sells annual subscriptions for a fee of $216. To attract more subscribers, the company offered a package to new subscribers. The $210 cost of the package includes: an annual subscription and a coupon for a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $200 per hour. The company estimates that approximately 30% of the coupons will be redeemed. Required: How much revenue should Manhattan Today recognize upon receipt of the $210 subscription price? How many performance obligations exist in this contract? Prepare the journal entry to recognize sale of 15 new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.

Service Industry AccountingThe Spectrum Fitness Club charges a nonrefundable annual membership fee of $1,200 for its services. For this fee, each member received a fitness evaluation (value $200), a monthly magazine (annual value $25), and two hours’ use of the equipment each week (annual value $1,100). Each of the three elements of the annual membership can be purchased separately. The initial direct costs to obtain the membership are $180. The direct cost of the fitness evaluation is $100, and the monthly direct costs to provide the other services are estimated to be $25 per person. Give the journal entries to record the transactions in 2019 relative to a membership sold on May 1, 2019.

Squeaky Shine provides car washing services in Jersey City, New Jersey. A three-month pass for automatic car wash sells for $60, which entitles the customer for an unlimited number of car washes during the contract period. Squeaky Shine estimates that pass holders wash their cars equally throughout the three-month period. On December 1st, customers purchased $2,160 of the three-month passes, with usage of the passes occurring evenly throughout the contract period. Required: 1. Prepare the journal entries that Squeaky Shine would record on December 1 and on December 31, 2024, with respect to this transaction. 2. State the account titles and amounts that will be included in Squeaky Shine's 2024 income statement and balance sheet. Complete this question by entering your answers in the tabs below. Required 1 Required 2 State the account titles and amounts that will be included in Squeaky Shine's 2024 income statement and balance sheet. Account Titles Amounts Income Statement and Balance…

CIA Review, Inc. provides review courses twice each year for students studying to take the CIA exam. The cost of textbooks is included in the registration fee. Text material requires constant updating and is useful for only one course. To minimize printing costs and ensure the availability of books on the first day of class, CIA Review has books printed and delivered to its offices two weeks in advance of the first class. To ensure that enough books are available, CIA Review normally orders 10 percent more than expected enrollment. Usually, there is an oversupply, and books are thrown away. However, demand occasionally exceeds expectations by more than 10 percent and there are too few books available for student use CIA Review has been forced to turn away students because of a lack of textbooks. CIA Review expects to enroll approximately 200 students per course. The tuition fee is $810 per student. The cost of teachers is $22,000 per course, textbooks cost $59 each, and other operating…

Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 10 helicopters makes between 1,000 and 2,000 ​round-trips per year. The records indicate that a helicopter that has made 1,000 ​round-trips in the year incurs an average operating cost of ​$350 per​ round-trip, and one that has made 2,000 ​round-trips in the year incurs an average operating cost of ​$300 per​ round-trip.   Read the requirements LOADING... .   Requirement 1. Using the​ high-low method, estimate the linear relationship y=a+bX​, where y is the total annual operating cost of a helicopter and X is the number of​ round-trips it makes to JFK airport during the year.