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Nuetrik [128]
3 years ago
12

Swifty Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $26 per year. During Nov

ember 2019, Swifty sells 27,120 subscriptions beginning with the December issue. Swifty 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.
1. Prepare the entry in November for the receipt of the subscriptions (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2. Prepare the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
ira [324]3 years ago
7 0

Answer:

A. Dr Cash $705,120

Cr Unearned subscription revenue

B. Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

Explanation:

a) Preparation of the entry in November for the receipt of the subscriptions

Dr Cash $705,120

(27,120*$26)

Cr Unearned subscription revenue $705,120

(To record the receipt of the subscriptions)

b) Preparation of the adjusting entry at December 31, 2015, to record sales revenue recognized in December 2015

Dr Unearned subscription revenue $58,760

($705,120 *1/12)

Cr Subscription revenue $58,760

(To record sales revenue recognized)

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$3878.55

Explanation:

Step 1 :

It is given that Kristy has a biweekly gross earnings of $1950.

Since it is bi-weekly payments there are 26 payments in the year.

Gross earnings per year = 1950 * 26 = $50,700

Step 2 :

It is given that the social security tax is 6.2% up to $128,400. Kristy's earnings of 50,700$ does not exceed the threshold $128,400, hence 6.2% of her entire income is subject to social security withholding.

Social security withholding = 6.2% of 50,700 = 6.2*50700/100 = $3143.40

Step 3 :

It is given that Medicare tax is 1.45% with no wage limit

Medicare withholding = 1.45% of 50,700 = 1.45*50700/100 = $735.15

Total withholding = Social Security withholding + Medicare withholding 3143.40 + 735.15 = $3878.55

7 0
3 years ago
PROBLEM: The Chicago Cubs play their home games at Wrigley Field, located in the Lakeview neighborhood of Chicago. A recent New
sergij07 [2.7K]

Answer:

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Explanation:

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The most likely cause of Natalia's poor performance is the lack of feedback

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Answer:

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Answer:

False

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