University Survival Magazine Ltd. is a small company run by two enterprising university students. They publish an issue of the magazine once a month from September through April. The magazine reports on various university activities and provides information such as how to get the best concert tickets, where to get the best pizza for the best price, where the good study spots are, and how to get library staff to help with research. The magazine is sold either on a prepaid subscription basis for $12.40 for all eight issues, or for $2.20 per issue. During September, 2,500 subscriptions were sold. Up to the end of December, a total of 13,500 single copies were sold. The company also pre-sells advertising space in the magazine to local businesses that focus on the student market. During July and August, the company signed up several businesses and collected $24,000 in advertising revenues. The advertisements are to be included in all eight issues of the magazine. The cost of printing and distributing the first four issues of the magazine was $46,500, of which $42.400 was paid by the end of December. Miscellaneous other expenses totalling $2,500 were incurred and paid in cash between September and December. Journalize all the transactions to the end of December. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter Ofor the amounts. Do not record any adjusting entries at this time.) Debit Credit Date Account and explanation July/Aug. Cash 24000 24000 Unearned Revenue (To record collection of advertising revenue.) Sept. Cash Unearned Revenue (To record collection from sale of subscriptions.) Dec. Cash 29700 Sales Revenue 29700 (To record revenue from sale of single copies.) Dec. 46500 Your answer is incorrect. Prepare any necessary adjusting entries on December 31. (Enter debit entries first followed by credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter for the amounts.) Debit Credit No. Account and explanation 1. (Adjusting entry for advertising revenue.) 2. (Adjusting entry for subscription revenue.) Prepare a simple statement of income for the magazine, for the period from July to December. (Enter loss using either a negative sign preceding the number e.g.-14,674 or parentheses eg. (14,674).) University Survival Magazine Ltd. Statement of Income For the year ended December 31, 20XX Revenues Subscription Revenue $ $ Advertising Revenue Sales Revenue Total Revenues $ Total Expenses Calculate the balance in the magazine's Cash account on December 31. $ Cash balance
