Question

Vaughn Magazine sold 9,480 annual subscriptions on August 1, 2020, for $13 each. Prepare Vaughn’s August 1, 2020, journal entry and the December 31, 2020, annual adjusting entry, assuming the magazines are published and delivered monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount choose a transaction date enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

Answer 1

Date	Date	Accounts Title and Explanation	Debit (in $)	Credit (in $)
1	1st August, 2020	Cash (9,480 x $13)	1,23,240
		Subscriptions received in advance		1,23,240
		(To record the receipt of annual subscriptions in advance)
	Adjusting Entry :
2	31st December, 2020	Subscriptions received in advance	51,350
		Subscriptions revenue		51,350
		($123,240 x 5/12)
		(To record the subscriptions revenue for 5 months from August to December)