Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$

$\backslash$table$[[,,],[$Unearned revenue,$7,575,],[$Legal revenue,,$7575]]$

b$.$ Caden started a new publication called Contest News. Its subscribers pay $$36$ to receive $12$ monthly issues. Wrth every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has $100$ new subscribers as of July $1.$ It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year$-$end journal entry that Caden must make as of December $31$ to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.

Step $1$: Determine what the current account balance equals.

Step $2$: Determine what the current account balance should equal.

Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.$