Question

On October 1, 2019, Paige Turner Publishing received $59,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Answer 1

Answer:

on 31st Dec 2019 the entry would be

Subscription Earned    $14,850 ($59400*3/12)  Debit

Unearned Subscriptions             $ 44500( 59,400- 14,850) Debit

Cash                                                             $59,400 (credit)