Answer:
A. Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
B. Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
Explanation:
A. Preparation of the adjusting entry at December 31, 2022, to record subscription revenue in December 2022.
Debit unearned subscription revenue $21,000
Credit Subscription Revenue $21,000
[($28 per year*9,000)/12]
(Being to record subscription revenue )
B. Preparation of the adjusting entry at March 31, 2023, to record subscription revenue in the first quarter of 2023.
Debit Unearned Subscription Revenue $63,000
Credit Earned Subscription Revenue $63,000
[($28 per year*9,000)/12*3]
(Being to record subscription revenue in the first quarter)
