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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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ekkarill92 answered 2 years ago
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