Question

Marigold Company typically sells subscriptions on an annual basis, and publishes six times a year. The magazine sells 96000 subscriptions in January at $20 each. What entry is made in January to record the sale of the subscriptions

Answer 1

Answer:

Dr Cash $1,920,000

Cr Unearned Subscription Revenue $1,920,000

Explanation:

Since The magazine sells 96,000 subscriptions in January at the amount of $20 each which means that the appropriate journal entry that made in January to record the sale of the subscriptions will be

Dr Cash $1,920,000

Cr Unearned Subscription Revenue $1,920,000

(96000*$20)

(To record the sale of the subscriptions)