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Sandhill Company Ltd . publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $ 2 5 per year. During November 2 0
Sandhill Company Ltd publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $ per year. During November Sandhill sells subscriptions for cash, beginning with the December issue. Sandhill prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December yearend.
Prepare a tabular summary to record the following events.
a Receipt of the subscriptions in November.
b Adjustment at December to record subscription reveriue in December
Include margin explanations for the changes in revenues and expenses. If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign or parentheses in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.
Unearned Subscrip. Revenue
Nov. $
Dec.
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