Nevin Company publishes a monthly sports magazine. Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2006. Nevin sells 9.000 subscriptions beginning with the December issue. Nevin prepares financial statements quarter!) and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscriptions and Subscription Revenue.

Instructions

(a) Prepare the entry in November for the receipt of the subscriptions.

(b) Prepare the adjusting entry at December 31, 2006, to record subscription revenue earned in December 2006.

(c) Prepare the adjusting entrj at March 31, 2007, to record subscription revenue earned in the first quarter ot 2007.