Evans Limited publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $40 in advance for a one-year subscription. During the month of August 2022, Evans Limited sold 280 one-year subscriptions and received payments in advance from all new subscribers. Only 69 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter. Table 6-4, Table 6-5

Note: Use appropriate factor from the table provided.

Required:

A. Use the horizontal model to record the effects of subscription fees received in advance during August 2022. Indicate the financial statement effect.

B. Use the horizontal model to record the effects of subscription revenue earned during August 2022. Indicate the financial statement effect.

Table 6-4: Factors for Calculating the Present value of \$1 Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Complete this question by entering your answers in the tabs below. Use the horizontal model to record the effects of subscription fees received in advance during August 2022. Indicate the financial statemen Note: Enter decreases with a minus sign to indicate a negative financial statement effect. 022. Indicate the financial statement effect. Use the horizontal model to record the effects of subscription revenue earned during August 2022 . Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. dicate the financial statement effect. Table 6-4: Factors for Calculating the Present value of \$1 Table 6-5: Factors for Calculating the Present Value of an Annuity of $1 Complete this question by entering your answers in the tabs below. Use the horizontal model to record the effects of subscription fees received in advance during August 2022. Indicate the financial statemen Note: Enter decreases with a minus sign to indicate a negative financial statement effect. 022. Indicate the financial statement effect. Use the horizontal model to record the effects of subscription revenue earned during August 2022 . Indicate the financial statement effect. Note: Enter decreases with a minus sign to indicate a negative financial statement effect. dicate the financial statement effect