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edugen wileyplus.com eaogle Hargouts Goop Hargouts Return to Blackboard Kieso, Intermediate Accounting, 16e HeleI System Announcements CALCULATOR PRINTER VERSIONBA NEXT Question 1 The following information relates to the Morganstern Magazine Company at the end of 2017. The aceounting period is the caiencar year 1. An insurance premium of $6,000 was paid on March 1, 2017, and was charged to Prepaid Insurance. The premium covers a 24-manth period beginning March 1, 2017 2. On June 1, 2017, cash of $54,000 was received from subscribers (customers) for a 36-month subscription perlod beginning on thet dobe. The recelpt was recorced hy 3. The Supplies account showed a balance of $5,000 at the beginning of 2027, Suppiles costing s16,000 were purchased during 2017 and debited to the asset account a debit to Cash and a credit to Unearned Subscription Revenue. Supplies of $3,000 were on hand at December 31, 2017 Using the information given above, prepare the necessary adjusting entries at December 31, 2012. (Credit account titles are automatically indented when the amount is entered. Do not fndent manually.) No. Account Titles and Explanation Debit Credit 1. 2.Explanation / Answer
Journal entry :
No Date accounts & explanation debit credit 1 Dec 31,2017 Insurance expense (6000*10/24) 2500 Prepaid insurance 2500 (To record insurance expense) 2 Dec 31,2017 Unearned subsription revenue (54000/36*7) 10500 Subscription revenue 10500 (To record subscription revenue recorded) 3 Dec 31,2017 Supplies expense (5000+16000-3000) 18000 Supplies 18000 (To record supplies expense)Related Questions
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