Moreno Company publishes a monthly sports magazine, Fishing Preview . Subscripti
ID: 2573121 • Letter: M
Question
Moreno Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $25 per year. During November 2017, Moreno sells 22,500 subscriptions beginning with the December issue. Moreno prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
Date
Account Titles and Explanation
Debit
Credit
Nov. 30
SHOW LIST OF ACCOUNTS
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
SHOW LIST OF ACCOUNTS
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
Moreno Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $25 per year. During November 2017, Moreno sells 22,500 subscriptions beginning with the December issue. Moreno prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
Explanation / Answer
Journal entry :
Date
Date
accounts & explanation Debit credit Nov.30 cash a/c (22500*25) 562500 Unearned subscription revenue a/c 562500 (To record receipt of subscriptions ) Dec 31 Unearned subscription revenue a/c (562500/12) 46875 subscription revenue a/c 46875 (To record adjusting entry for subscription revenue) mar 31 Unearned subscription revenue a/c (562500/12)*3 140625 subscription revenue a/c 140625 (To record adjusting entry for subscription revenue)Related Questions
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