The Magazine Weekly Association, Inc., one of the largest publishers of magazines in the world, had unearned revenues of $380.6 million on its March 31, 2012, balance sheet. The company showed $220.4 million as a current liability and $120.2 million was reported as long term. Suppose that during April, Magazine Weekly delivered magazines with a sales value of $40 million to prepaid subscribers and sold subscriptions for $45 million cash. Read the requirements. Requirement 1. Prepare journal entries for the new subscriptions and the deliveries to prepaid subscribers. (Record debits first, then credits. Explanations are not required.) Start by recording the cash subscription sales. Accounts Debit Credit Now record the prepaid subscription sales. Accounts Debit Credit Requirement 2. Compute the amount in the unearned revenue account at the end of April 2012. (Use parentheses or a minus sign for amounts to be subtracted.) Unearned revenue, March 31, 2012 Subscriptions paid for in cash Earning of unearned revenue Unearned revenue, April 30, 2012