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Flauer [41]
1 year ago
9

Bramble Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 102000 subs

criptions in January at $15 each. What entry is made in January to record the sale of the subscriptions
Business
1 answer:
nirvana33 [79]1 year ago
4 0

The answer is option A. a. Cash 900,000 Unearned

Subscription Revenue 900,000

On the part of the seller, the sale of 60,000

Magazines at $15 constitute liability.

Remember that cash has already been received by the company.

Hence, this amount is yet to be earned by the company that it is considered liability on the part of the seller.

Account  Title                                       Debit          Credit

Cash 60,000 subscriptions * $15   $900,000

Unearned Subscription Revenue                           $900,000

Take note that the unearned subscription revenue is amortized to subscription revenue on a monthly or yearly basis.

Disclaimer:-your question is incomplete, please see below for complete question.

a. Cash 900,000 Unearned

Subscription Revenue 900,000

b. Prepaid Subscriptions 900,000

Cash 900,000 Subscriptions

c. Receivable 150,000

Unearned Subscription Revenue 150,000

d. Subscriptions Receivable 900,000

Subscription Revenue 900,000

Learn more about subscriptions here:-brainly.com/question/15301858

#SPJ4

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