Required 1. Complete the paragraph explaining why unearmed reverues are liablities instead of revenues. In the explanation, use the folowing actual example: Maclean's magazine colects cash from subscribers in advance and later delivers magazines to svbscribers over a one-year peried. Explain what happers to the uneamed subsoription revenue over the course of a year as Maclean's delvers magazines to subscribers. Into what accoust does the uneamed subscriotion revenue go as Mackan's delivers magazines? 2. Give the jourmal entries that Maclean's would make to: a. Colect $41.000 of subsoription revenue in advance b. Record earming S14,000 of subsorption revenue Include an explanation for each entry Requirement 1. Complete the paragraph explaining why uneamed revenues are labities instead of revenues In the explanaton, use the folowing actual example Maclean's magarne collects cash from subecriters in advance and later delivers magazines to subscribers over a one year period. Explain what happens to the unearmed subsoioticn revenue over the course of a year as Macan's delivers magazines to subscribers. Into what account does the uneamed subsoriction revenue go as Maclean's delivers magaines? Uneamed revenues are labities because Aaclean's has ubscribers Mackean's delivers magazines to subscrbers, Maclean's eams the revenue, and the dollar amount of the Vproviding then wih magaines Receiving the cash in advance creates revenue is tranaferred from for Maciean's As revanue to revenue. Requirement 2. Give the joumal enties that Maolean's would make to (a) collect $41,000 of subscription revenue in advance and (b) record earning $14,000 of subscription nevenue. Inolude an explanation for each entry. ( debits first, then credits. Enter explanations on the last line.) a. Begin by recording the entry to show Maciean's collecting subscription revenue in advance Journal Entry Accounts and Explanations Date Debit Credit b. Now record the entry to show Maclean's earming the subscription revenue. Journal Entry Date Accounts and Explanations Debit Credit