Problem 3-7 The Jerome Company entered into the following transactions during 20x3: 1. On April 1, 20x5, paid $4,800 for a two-year insurance policy that took effect on April 1, 20x5. The cost of the policy was debited to the Prepaid Insurance account. 2. In June 20x5, the company launched a new monthly magazine and began selling annual subscriptions at a cost of $12 each. Any subscriptions paid for in a given month would receive their first magazine on the first of the following month, i.e. any subscriptions received in June would receive their first magazine on July 1. The first magazine was published on July 1. The following subscriptions were sold during 20x5: June July August September October November December 120 360 450 330 670 1,450 2,610 The cash proceeds received on subscriptions were credited to the Unearned Subscriptions Revenue account