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wlad13 [49]
3 years ago
7

Splish Magazine sold 11,520 annual subscriptions on August 1, 2020, for $17 each. Prepare Splish August 1, 2020, journal entry a

nd the December 31, 2020, annual adjusting entry, assuming the magazines are published and delivered monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Business
1 answer:
REY [17]3 years ago
3 0

Answer:

Date August 1st

cash   195,840 debit

   unearned revenue   195,840 credit

--to record the subcription sale on August 1st--

Date December 31th

unearned revenue   81,600 debit

             subscription revenue   81,600 credit

--to record accrued revenue at Dec 31th--

Explanation:

11,520 magazine subscriptions x $ 17 = $ 195,840

The subcription wil lbe unearned revenue at sale and reveneu will be recognize overtime as the earnings are accrued.

accrued from August 1 to Dec 20: 5 months

$ 195,840 x 5 months / 12 months = $ 81,600

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4 years ago
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