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dangina [55]
3 years ago
15

Crane Company publishes a monthly sports magazine, Fishing Preview. Subscription to the magazine cost $30 per year. During Novem

ber 2020, Crane sells 25,000 subscriptions beginning with the December issue. Crane 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. Prepare the entry in November for the receipt of the subscription
Mathematics
1 answer:
lesya692 [45]3 years ago
5 0

Journal entry

Explanation:

                                  Books of (----Limited)

                                      Journal Entry

<u>Date         Account Title and Explanation            Debit         Credit </u>

              Cash / Bank                          A/c  Dr.     $750,000

                To Unearned Subscription A/c                               $750,000

                            (Being Unearned Subscription)

Computation:

Amount of Unearned Subscription =  25,000 × $30

Amount of Unearned Subscription =  %750,000

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