Exercise 10-7 Sandhill Co. Ltd. publishes a monthly sports magazine, Fishing Pre

Question

Exercise 10-7 Sandhill Co. Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $25 per year. During November 2017, Sandhill sells 6,576 subscriptions for cash, beginning with the December issue. Sandhill 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 Prepare the entry in November for the receipt of the subscriptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Prepare the adjusting entry at December 31, 2017, to record subscription revenue in December 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Prepare the adjusting entry at March 31, 2018, to record subscription revenue in the first quarter of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Explanation / Answer

A. Entry in November:

B.

Adjusting entry at Dec 31,2017:

C.

Adjusting entry at march 31, 2018:

Nov 30 Cash $164,400 Unearned subscription revenue(6576×$25) $164,400

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.