Instructions Final question 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 $39,000. During the month of August, the company sold 1,400 yearly subscriptions After the adjusting entry at the end of August, the balance in the Subscriptions Received in Advance account is $60,000 Required: 1. Prepare the journal entry to record the sale of the 1,400 yearly subscriptions during the month of August 2. Prepare the adjusting joumal entry on August 31 3. Assume that the accountant made the correct entry during August to record the sale of the 1,400 subscriptions but forgot to make the adjusting entry on August 31. Would net income for August be overstated or understated? me now video Print Item Subscriptions restrictions Chart of Accounts General Journal Instructions Chart of Accounts Ho Re Ad CHART OF ACCOUNTS Horse Country Living General Leddy Final Question ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid insurance 154 Office Supplies on Hand REVENUE 411 Subscription Revenue EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense $30 in advance. On Aug y at the end of August, th djusting Show Me How Video Print Item Subscriptions Instructions General Journal Final Question Chart of Accounts Ho Re Ad 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 154 Office Supplies on Hand 174 Equipment 179 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries and Wages Payable 235 Notes Payable 250 Subscriptions Received in Advance EXPENSES 500 Cost of Goods Sold 521 Salaries and Wages Expense 532 Utilities Expense 533 Insurance Expense 534 Rent Expense 537 Office Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense Check My Work X $30 in advanc y at the end of adjusting Email Instr Subscriptions Instructions Chan ecounts General Journal Final Question Chart of Accounts Hd LIABILITIES Re 211 Accounts Payable: Ad 231 Salaries and Wages Payable 235 Notes Payable 250 Subscriptions Received in Advance 261 Income Taxes Payable 537 Office Supplies Expense 541 Depreciation Expense 551 Advertising Expense 559 Miscellaneous Expenses 810 Interest Expense 910 Income Tax Expense EQUITY 311 Capital Stock 331 Retained Earnings $30 in advance. On A at the end of August adjusting Chart of Accounts General Journal GOERAL JOURNAL DATE ACCOUNT TITLE Spplies exgeme Supplies Feedback Check My W 0 Scorn 6/33 ACT ON FINANCIAL STATEMENTS BALANCE SHEET INCOME STREMENT POST HO DENT CNET 12/17 Instructions Chart of Accounts General Journal theredsk DATE Supplie Adjusting NCT ON FINANCIAL STATEMENTS S4/35 GENERAL JOURNAL BALANCE SHEET INCOME STATEMENT