Identifying RevenuesRevenues are normally recognized when the delivery of goods or service...

Identifying Revenues

Revenues are normally recognized when the delivery of goods or services has occurred, there is persuasive evidence of an arrangement for customer payment, the price is fixed or determinable, and collection is reasonably assured. The amount recorded is the cash-equivalent sales price. The following transactions occurred inSeptember. 2013:

 a. popular ski magazine company receives a total of SI 1.980 today from subscribers. The subscriptions begin in the next fiscal year. Answer from the magazine company's standpoint.

 b. On September 1. 201.3. a bank lends SI.200 to a company: the note principal and 5144 (SI.2(X) X 12 percent) annual interest are due in one year. Answer from the bank's standpoint.

 c. Fucillo Hyundai. Inc. sells a truck with a list, or "sticker." price of 520.050 for SI 8.050 cash.

 d. Macy's department store orders 1.000 men's shirts for S15 each for future delivery from Phillips-Van Heusen Corporation, manufacturer of Izod. Arrow. Van Heuscn. and Calvin Klein shirts. The terms require payment in full w ithin 30 days of delivery . Answer from Phillips-Van Heusen's standpoint.

 e. Phillips-Van Heusen Corporation completes production of the shirts described in id) and delivers the order. Answer from Phillips-Van Heusen's standpoint.

 f. Phillips-Van Heusen receives payment from Macy's for the events described in (d) and (e). Answer from Phillips-Van Heusen's standpoint.

 g. customer purchases a ticket from American Airlines for $610 cash to travel the follow ing January. Answer from American Airlines's standpoint.

 h.  Ford Motors issues $20 million in new common stock.

 i. Penn State University receives S18.300.000 cash for 80,000 five-game season football tickets.

 j. Penn State plays the first football game referred to in (i).

 k.  Precision Builders signs a contract with a customer for the construction of a new SI.500.000 warehouse. At the signing. Precision receives a check for S150.000 as a deposit on the future construction. Answer from Precision's standpoint.

 l.  A customer orders and receives 10 personal computers from Dell; the customer promises to pay SI 8,400 within three months. Answer from Dell's standpoint.

 m. Sears, a retail store, sells a S100 lamp to a customer who charges the sale on his store credit card. Answer from Sears's standpoint.

Required:

For each of the transactions, if revenue is to be recognized in September, indicate the revenue account title and amount. If revenue is not to be recognized in September, explain why.