Question
A company sells subscriptions on an annual basis and publishes six times a year. The magazine sells 90,000 subscriptions in January at $15 each. What
A company sells subscriptions on an annual basis and publishes six times a year. The magazine sells 90,000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions?
1. Dr Subscriptions Receivable..... 1,350,000
Cr Subscription Revenue............ 1,350,000
2. Dr Cash ....................................... 1,350,000
Cr Unearned Subscription Revenue..........1,350,000
3. Dr Subscriptions Receivable.............. 225,000
Cr Unearned Subscription Revenue.......... 225,000
4. Dr Prepaid Subscriptions....................... 1,350,000
Cr Cash.............................. 1,350,000
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