Evans Ltd. publishes a monthly newsletter for retail marketing managers and requires its subscribers to pay $90 in advance for a one-year subscription. During the month of August 2016, Evans Ltd. sold 400 one-year subscriptions and received payments in advance from all new subscribers. Only 240 of the new subscribers paid their fees in time to receive the August newsletter; the other subscriptions began with the September newsletter.

Required: a-1. Use the horizontal model to record the effects of subscription fees received in advance during August 2016. (Use amounts with for increases and amounts with for decreases.) Assets Net Income 36,000Uearnad subscription revanua 8,000 a-2. Use the horizontal model to record the effects of subscription revenue earned during August 2016. (Use amounts with for increases and amounts with for decreases.) Assets Net Income