A New York City daily newspaper called Manhattan Today charges an annual subscription fee of...
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A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $ Customers prepay their subscriptions and receive issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $ for an annual subscription that also would include a coupon to receive a discount on a onehour ride through Central Park in a horsedrawn carriage. The list price of a carriage ride is $ per hour. The company estimates that approximately of the coupons will be redeemed. Required: How much revenue should Manhattan Today recognize upon receipt of the $ subscription price? How many performance obligations exist in this contract? Prepare the journal entry to recognize sale of new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation. 
A New York City daily newspaper called Manhattan Today charges an annual subscription fee of $ Customers prepay their subscriptions and receive issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $ for an annual subscription that also would include a coupon to receive a discount on a onehour ride through Central Park in a horsedrawn carriage. The list price of a carriage ride is $ per hour. The company estimates that approximately of the coupons will be redeemed.
Required:
How much revenue should Manhattan Today recognize upon receipt of the $ subscription price?
How many performance obligations exist in this contract?
Prepare the journal entry to recognize sale of new subscriptions, clearly identifying the revenue or deferred revenue associated with each performance obligation.
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