During the year, the publishers of Fishing for the Family, a monthly magazine, received cash for a

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During the year, the publishers of Fishing for the Family, a monthly magazine, received cash for a 3-year magazine subscription. A credit was made to the Unearned Subscriptions Revenue account.

(a). Is the required adjusting entry made at the end of the period an example of accrual or a deferral?

(b). What types of accounts will be affected by the required adjusting entry?

(c). What effect will omission of the adjusting entry have on profit and on the statement of financial position?

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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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