Westland Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost ($ 24) per
Question:
Westland Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost \(\$ 24\) per year. During November 1996, Westwood sells 6,000 subscriptions beginning with the December issue. Westwood prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
\section*{Instructions}
(a) Prepare the entry in November for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31, 1996, to record subscription revenue earned in December of 1996
(c) Prepare the adjusting entry at March 31, 1997, to record subscription revenue earned in the first quarter of 1997 .
Step by Step Answer:
Financial Accounting
ISBN: 9780471169208
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso