Problem #2 Current Liabilities

Professor Ding-Bat subscribed to Guns & WeaponsMagazine. He paid $240 for a yearly subscription in December 2019 for the upcoming year (2020). The Guns & Weapons magazine comes out monthly and describes how to buy or make guns and ammunition of all types. Professor Ding-Bat was interested in how to make a bazooka. The issues were considered collector items for those interest in guns and valued at $50 per issue.

Required: Make entries for the company when Professor Ding-Bag subscribed to the magazine in December 2019 and for the first two months of his subscription (January and February 2020).