Exercise 12.7 (Static) Recording adjustments for accrued and deferred income items. LO 12-3 a. On December 31, 20X1, the Notes Receivable account at Sufen Motetlals Corporation had a balance of $25,000, which represented a six-month, 6 percent note received from a customer on September 1 . b. During the week ended June 7, 20X1, McCormick Media recelved $90,000 from customers for subscriptions to its magazine Modern Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1. c. On November 1, 20X1, Perez Realty Company rented a commercial buliding to a new tenant and received $37,200 in advance to cover the rent for six months. Upon receipt, the $37,200 was recorded in the Unearned Rent account. d. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 60 home games, receiving $9,200,000. Upon receipt, the \$9,200,000 was recorded in the Unearned Seoson Ticket income account. At December 31, 20X1, the Mighty Bucks Hockey Club had played 6 home gomes: For each of the above independent situations, indicate the adjusting entry that must be made on the December 31,201, worksheet assuming no previous adjusting entries have been made during the year. Journal entry worksheet a. On December 31, 20X1, the Notes Receivable account at Sufen Moterials Corporation had a balance of $25,000, which represented a six-month, 6 percent note recelved from a customer on September 1 . b. During the week ended June 7, 20X1, McCormick Media received $90,000 from customers for subscriptions to its magazine Modem Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1. c. On November 1, 20X1, Perez Realty Company rented a commerclal buliding to a new tenant and received $37,200 in advance to cover the rent for six months, Upon receipt, the $37,200 was recorded in the Unearned Rent account. d. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 60 home games, recelving $9,200,000. Upon recelpt. the $9,200,000 was recorded in the Unearned Season Ticket income account. At December 31,201, the Mighty Bucks Hockey Club had played 6 home games. For each of the above independent situations, indicate the adjusting entry that must be made on the December 31,201, worksheet assuming no previous adjusting entries have been made during the year. Journal entry worksheet Record an adjusting entry for subscription revenue earned. Noter Enter debits before credits. a. On December 31, 20x1, the Notes Receivable account at Sufen Materials Corporation had a balance of $25,000, which represented a six-month, 6 percent note recelved from a customer on September 1 . b. During the week ended June 7, 20X1, McCormick Media received $90,000 from customers for subscriptions to its magazine Madem Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 201. c. On November 1,20X1, Perez Realty Company rented a commercial building to a new tenant and received $37,200 in advance to cover the rent for six months. Upon receipt, the $37,200 was recorded in the Unearned Rent account. d. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 60 home games, recelving $9,200,000. Upon receipt. the \$9.200,000 was recorded in the Unearned Season Ticket income account. At December 31, 20X1, the Mighty Bucks Hockey Club had played 6 home games. For each of the above independent situations, indicate the adjusting entry that must be made on the December 31,201, worksheet assuming no previous adjusting entries have been made during the year. Journal entry worksheet a. On December 31, 20X1, the Notes Receivable account at Sufen Materials Corporation had a balance of $25,000, which represented a six-mionth, 6 percent note recelved from a customer on September 1 . b. During the week ended June 7, 20X1, McCormick Media received $90,000 from customers for subscriptlons to its magazine Modern Business. On December 31, 20X1, an analysis of the Unearned Subscription Revenue account showed that 60 percent of the subscriptions were earned in 20X1. c. On November 1, 201, Perez Realty Company rented a commerclal bullding to a new tenant and recelved $37,200 in odvance to covet the rent for six months. Upon receipt, the $37,200 was recorded in the Unearned Rent account. d. On November 1, 20X1, the Mighty Bucks Hockey Club sold season tickets for 60 home games, receiving $9,200,000. Upon receipt, the \$9.200,000 was recorded in the Unearned Season Ticket income account. At December 31, 20x1, the Mighty Bucks Hockey Club had played 6 home games. For each of the above independent situations, indicate the adjusting entry that must be made on the December 31,201, worksheet assuming no previous adjusting entries have been made during the year. Journal entry worksheet