(1) On September 31^st, Boraras received a prepayment of $20,000 cash for a contract with the following details:

• Sale of 100 widgets
• Sale of 100 1-year subscriptions of Widget Monthly Magazine

The widgets have a retail price of $25, and the monthly subscription cost of Widget Monthly Magazine is $10.

Provide the journal entries on September 31^st.

(2) Pertaining to the scenario above, Boraras shipped out the October issue of Widget Monthly Magazine on Oct 31^st2020, the November issue on November 30^th2020, and the December issue together with the widgets on Dec 31^st2020.

Assuming that Boraras last prepared financial statements on Sept 31^st2020, provide the necessary adjusting entries on Dec 31^st2020.