Exercise 10-7 Blossom Company Ltd. publishes a monthly sports magazine, Fishing
ID: 2515338 • Letter: E
Question
Exercise 10-7
Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2017, Blossom sells 7,980 subscriptions for cash, beginning with the December issue. Blossom 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 31 year-end.
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Open Show Work
Exercise 10-7
Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2017, Blossom sells 7,980 subscriptions for cash, beginning with the December issue. Blossom 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 31 year-end.
Explanation / Answer
Date Account title and explanation Debit credit Nov cash 159600 Unearned Subscription Revenue 159600 [Subscription received In advance 7980*20] Dec 31 Unearned Subscription Revenue 13300 Subscription Revenue 13300 [subscription earned for one month ]159600*1/12] Mar 31 Unearned Subscription Revenue 39900 Subscription Revenue 39900 [being subscription earned for 3month :159600*3/12]
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