Question
On 1 November 2018 the publishers of Home magazine received $198 (including GST) in advance for a 12-month subscription to their monthly issue. At the
On 1 November 2018 the publishers of Home magazine received $198 (including GST) in advance for a 12-month subscription to their monthly issue. At the end of the financial year on 30 June 2019 the adjusting entry will be:
DR Unearned subscriptions (liability) $120; CR Subscriptions income $120.
DR Cash $120; CR Subscriptions income $120.
DR Cash $198; CR GST payable $18; CR Unearned subscriptions (liability) $180.
DR Unearned subscriptions (liability) $132; CR Subscriptions income $120; CR GST payable $12.
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Financial Accounting an introduction to concepts, methods and uses
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
13th Edition
978-0538776080, 324651147, 538776080, 9780324651140, 978-0324789003
