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Sunland Company Ltd . publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $ 2 0 per year. During November 2 0
Sunland Company Ltd publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $ per year. During
November Sunland sells subscriptions for cash, beginning with the December issue. Sunland 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 revenue 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.
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