Professor I have a question. Thank you for your course explanations by the way. Very helpful. Wouldn’t the price of the carriage ride be $210? If the carriage ride is $350 and the customer gets a 40% discount that is $140 coming off of the list price. I don’t quite understand why you said the price of the carriage ride is $140. And if they say 30% of the coupons will be redeemed wouldn’t that be 30% of the 15 coupons that would be issued because it was included when a new subscriber purchased an annual subscription? Please advise. Thank you.
Why do I think the $540 is a liability for the company? The company is going to cover the 40% of the cost, right? And the the revenue for the carriage should be an entity other than the news company... can someone help me understand?
It’s a coupon. Whether it’s redeemed is not a concern of the company, but rather a liability for the carriage company. There future cash flows aren’t expected to change due to this coupon, because it is not their responsibility. If I gave you a coupon will there be any future obligation for me to exchange an asset to you? I see how this can be confusing, but you have to look at it high level and understand that the coupon is really just a service being provided
The lessons you are Explaning is very attractive, I am appreciating to start
# financial accounting 1 and 2.
Plz Reply my Request, my dear teacher.
Professor I have a question. Thank you for your course explanations by the way. Very helpful. Wouldn’t the price of the carriage ride be $210? If the carriage ride is $350 and the customer gets a 40% discount that is $140 coming off of the list price. I don’t quite understand why you said the price of the carriage ride is $140. And if they say 30% of the coupons will be redeemed wouldn’t that be 30% of the 15 coupons that would be issued because it was included when a new subscriber purchased an annual subscription? Please advise. Thank you.
The 40% discount the company offers is the unrealized revenue for the newspaper company.
@@mon652836 thank you
I had the same doubt.
Yes he should have used 60%
We need to credit unearned revenue right?
Final question. Why are we adding the standalone coupon price to $378 instead of the $360 that we would get paid for new subscribers?
Because $360 is the transaction price. This is the price that you’re allocating between the stand alone market values.
Why do I think the $540 is a liability for the company? The company is going to cover the 40% of the cost, right? And the the revenue for the carriage should be an entity other than the news company... can someone help me understand?
It’s a coupon. Whether it’s redeemed is not a concern of the company, but rather a liability for the carriage company. There future cash flows aren’t expected to change due to this coupon, because it is not their responsibility. If I gave you a coupon will there be any future obligation for me to exchange an asset to you? I see how this can be confusing, but you have to look at it high level and understand that the coupon is really just a service being provided