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b. A. Caden started a new publication called Contest News. Its subscribers pay $30 to receive 12 monthly issues. With every new subscriber, Caden debits

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b. A. Caden started a new publication called Contest News. Its subscribers pay $30 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2017. It sends Contest News to each of these subscribers every month from July through December. Assume no changes in subscribers, prepare the journal entry that Caden must make as of December 31, 2017, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Debit or Credit? Step 1: Determine what the current account balance equals 36,000 Unearned subscription revenue 36,000 36,000 18,000 18,000 18,000 Step 2: Determine what the current account balance should equal $ 18,000 Credit Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Debit Unearned subscription revenue 18,000 Unearned revenue 18,000

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