Horse Country Living publishes a monthly magazine for which a 12-month subscription costs $30. All subscriptions require payment of the full $30 in advance. On August 1, the balance in the Subscriptions Received in Advance account was $40,500. During the month of August, the company sold 960 yearly subscriptions. After the adjustment at the end of August. the balance in the Subscriptions Received in Advance account is $60,000. Required: 1. Identify and analyze the transaction to record the sale of the 960 yearly subscriptions during the month of August. Accounts Statements) How does this entry affect the accounting equation? If a financial statement item is not affected, select "No Entry and leave the amount box blank. If the effect on a financial statement item is negative. Le a decrease be sure to enter the answer with a minus sign Balance Sheet Income Statement 2. deind thement on August 31 Accounts Statements try and leave the amount box blank. If the effect on a financial statement item is negative, le, a decrease be sure to enter the How does this entry tect the coug ation a financial statement item is not affected t o answer with minus sign Balance Sheet Income Statement Stockholders Assets Liabilities Equity Revenues Expenses 3. Assume that the accountant made the correct entry during August to record the sale of the 960 subscriptions but forgot to make the adjustment on August 31. Would not income for August ! be overstated or understated