Question
In: Accounting
1) A magazine company sells a 1-year subscription for $23.88 and a 2-year subscription for $38.16...
| 1) | A magazine company sells a 1-year subscription for $23.88 and a 2-year | |||||||||||||||
| subscription for $38.16 on January 1, 2009. | ||||||||||||||||
| Create the journal entry to record both the sale and the associated | ||||||||||||||||
| adjusting entry on January 31, 2009 | (check figure: balance of unearned subscription revenue after all transactions = 58.46) | |||||||||||||||
Solutions
Expert Solution
| Date | Account titles and Explanation | Debit | Credit |
| Jan. 1 | Cash | $62.04 | |
| Unearned subscription revenue [$23.88 + $38.16] | $62.04 | ||
| (To record unearned revenue) | |||
| Jan. 31 | Unearned subscription revenue | $3.58 | |
| Subscription revenue [Refer working note below] | $3.58 | ||
| (To record revenue) |
.
.
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