Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new subscriber, Caden debits

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions

Question

Discuss three reasons why firms issue preferred shares.

Answered: 1 week ago

Question

6.65 Find the probability that z lies between z=-1.48 and z=1.48.

Answered: 1 week ago

Question

1,553.5

Answered: 1 week ago