b. Caden started a new publication called Contest News. Its subscribers pay $36 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. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Step 1: Determine what the current account balance equals 3,600 Step 2: Determine what the current account balance should equal Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Adjusting Entry Uneamed subscription revenue Subscription revenue 1,800 Debit or Credit? Unearned subscription revenue 3,600 3,600 7,875 1,800 1,800 Debit Credit 7.875 7,875