Exercise 10-7

Cassini Company Ltd. publishes a monthly sports magazine,Fishing Preview. Subscriptions to the magazine cost $28per year. During November 2017, Cassini sells6,300subscriptions for cash, beginning with the December issue. Cassini prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.

(a)

Prepare the entry in November for the receipt of the subscriptions.

Date

Account Titles and Explanation

Debit

Credit

Nov.