Question
1. On September 1, this year Magazine Inc. sold 400 one-year subscriptions for $90 each. The total amount received was recorded in a permanent account.
1. On September 1, this year Magazine Inc. sold 400 one-year subscriptions for $90 each. The total amount received was recorded in a permanent account. What would be the required adjusting entry at December 31, this year?
A. Service Revenue 12,000 Unearned Revenue 12,000
B. Service Revenue 24,000 Unearned Revenue 24,000
C. Unearned Revenue 24,000 Service Revenue 24,000
D. Unearned Revenue 12,000 Service Revenue 12,000
2. On September 1, this year Magazine Inc. sold 400 one-year subscriptions for $90 each. The total amount received was recorded in a nominal (temporary) account. What would be the required adjusting entry at December 31, this year?
| A. | Service Revenue | 12,000 | |
| Unearned Revenue | 12,000 | ||
| B. | Service Revenue | 24,000 | |
| Unearned Revenue | 24,000 | ||
| C. | Unearned Revenue | 24,000 | |
| Service Revenue | 24,000 | ||
| D. | Unearned Revenue | 12,000 | |
| Service Revenue | 12,000 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Financial Accounting A Decision Making Approach
Authors: Thomas E. King, Valdean C. Lembke, John H. Smith
2nd Edition
0471328235, 978-0471328230
