Complete the paragraph to explain why unearned revenues are liabilities instead of revenues. In the explanation, use the following actual example: The New York Times , a national newspaper, collects cash from subscribers in advance and later provides news content via print newspapers and online access to subscribers over a one-year period. Explain what happens to the unearned revenue over the course of a year as The New York Times delivers papers and online content to subscribers. Into what account does the earned subscription revenue go as The New York Times delivers papers and online content? Give the journal entries that The New York Times would make to (a) collect $ 50 comma 000 of subscription revenue in advance and (b) record earning $ 40 comma 000 of subscription revenue. Include an explanation for each entry.

Explain what happens to the unearned revenue over the course of a year as The New York Times delivers papers and online content to subscribers. Unearned revenues are liabilities because The New York Times has "choose one:" (ESTABLISHED AN ACCOUNTS PAYABLE FOR) or (RECEIVED CASH FROM) subscribers (BEFORE) or (AFTER) providing them with newspapers and online access.

Into what account does the earned subscription revenue go as The New York Times delivers papers and online content?

As The New York Times delivers newspapers to subscribers, The New York Times earns the revenue, and that amount then Choose one: (GETS EXPENSED TO THE DELIVERY EXPENSE ACCOUNT) or (GOES FROM THE REVENUE ACCOUNT TO THE UNEARNED REVENUE ACCOUNT.) or (GOES FROM THE UNEARNED REVENUE ACCOUNT TO THE REVENUE ACCOUNT)

Give the journal entries that The New York Times would make to (a) collect $ 50 comma 000 of subscription revenue in advance and (b) record earning $ 40 comma 000 of subscription revenue. Include an explanation for each entry. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

(a) Begin by recording the entry to show The New York Times collecting subscription revenue in advance Journal Entry Date Accounts and Explanations Debit Credit (b) Now record the entry to show The New York Times earning $40,000 of subscription revenue Journal Entry Date Accounts and Explanations Debit Credit