Maggie’s Millinery Magazine (MMM) is very popular among the jet set, which rely on Maggie’s exotic hats and other fine apparel for every film premiere and Academy Award ceremony. MMM is only available by subscription at an annual rate of $360 for 12 monthly issues. Show the effects of the following events, using the balance sheet equation:

1. MMM receives orders for 10 annual subscriptions with full payment enclosed.

2. MMM sends six issues to each of these subscribers during the current year.

Ignore inventory effects.

3. These subscribers have all failed to win an Oscar so they cancel their subscriptions after the first six months, and MMM sends them a refund for the remaining issues. P-968