{"id":1767,"date":"2015-07-17T12:42:11","date_gmt":"2015-07-17T12:42:11","guid":{"rendered":"https:\/\/courses.candelalearning.com\/finaccountingxmaster\/?post_type=chapter&p=1767"},"modified":"2015-07-19T13:38:00","modified_gmt":"2015-07-19T13:38:00","slug":"accounting-in-the-headlines-3","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/clinton-finaccounting\/chapter\/accounting-in-the-headlines-3\/","title":{"raw":"Accounting in the Headlines","rendered":"Accounting in the Headlines"},"content":{"raw":"

When does SurveyMonkey recognize revenue from its Platinum annual subscription\u00a0plans?<\/h1>\r\n

\u00a0<\/span><\/p>\r\n\r\n

\r\n\r\n\"Picture<\/a>\r\n\r\nSurveyMonkey<\/a> is an online survey company that allows its subscribers to customize and administer surveys.\u00a0 It recently made the news for raising another $250 million in equity funding (\u201cSurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.)\u00a0 (Note: SurveyMonkey is privately held.\u00a0 The founder says the company will not go public because the related costs of being a publicly-held organization are too high.)<\/em>\r\n\r\nSurveyMonkey\u2019s basic services are free and include the ability to customize a survey containing a maximum 10 questions for up to 100 responses.\r\n\r\nPremium plans are also available through SurveyMonkey.\u00a0 Features of the Platinum SurveyMonkey plan include unlimited questions, unlimited number of responses, custom logos, and phone support.\u00a0 The Platinum plan costs $65 per month and is billed annually on the starting date of the plan for a total cost of $780.\r\n\r\nQuestions<\/strong>\r\n
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  1. Assume that Black Squirrel Design, Inc., signs up for the Platinum plan at SurveyMonkey on December 1, 2015. The customer pays the entire $780 on March 1. How will SurveyMonkey record this customer\u2019s payment?\u00a0 What asset and\/or liability accounts are affected?<\/li>\r\n\t
  2. Continue the same example from Item #1. If SurveyMonkey has a December 31 year end, how much revenue related to the Platinum plan purchased by Black Squirrel Design will SurveyMonkey recognize at December 31, 2015? How much revenue from the Black Squirrel Design purchase will be recognized during 2016?<\/li>\r\n<\/ol>\r\n<\/div>","rendered":"

    When does SurveyMonkey recognize revenue from its Platinum annual subscription\u00a0plans?<\/h1>\n

    \u00a0<\/span><\/p>\n

    \n

    \"Picture<\/a><\/p>\n

    SurveyMonkey<\/a> is an online survey company that allows its subscribers to customize and administer surveys.\u00a0 It recently made the news for raising another $250 million in equity funding (\u201cSurveyMonkey is worth $2 billion after new $250 million fundraising round, Fortune, December 15, 2014.)\u00a0 (Note: SurveyMonkey is privately held.\u00a0 The founder says the company will not go public because the related costs of being a publicly-held organization are too high.)<\/em><\/p>\n

    SurveyMonkey\u2019s basic services are free and include the ability to customize a survey containing a maximum 10 questions for up to 100 responses.<\/p>\n

    Premium plans are also available through SurveyMonkey.\u00a0 Features of the Platinum SurveyMonkey plan include unlimited questions, unlimited number of responses, custom logos, and phone support.\u00a0 The Platinum plan costs $65 per month and is billed annually on the starting date of the plan for a total cost of $780.<\/p>\n

    Questions<\/strong><\/p>\n

      \n
    1. Assume that Black Squirrel Design, Inc., signs up for the Platinum plan at SurveyMonkey on December 1, 2015. The customer pays the entire $780 on March 1. How will SurveyMonkey record this customer\u2019s payment?\u00a0 What asset and\/or liability accounts are affected?<\/li>\n
    2. Continue the same example from Item #1. If SurveyMonkey has a December 31 year end, how much revenue related to the Platinum plan purchased by Black Squirrel Design will SurveyMonkey recognize at December 31, 2015? How much revenue from the Black Squirrel Design purchase will be recognized during 2016?<\/li>\n<\/ol>\n<\/div>\n\n\t\t\t
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