Ask Question
12 April, 11:30

Splish Magazine sold 11,520 annual subscriptions on August 1, 2020, for $17 each. Prepare Splish August 1, 2020, journal entry and the December 31, 2020, annual adjusting entry, assuming the magazines are published and delivered monthly. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

+3
Answers (1)
  1. 12 April, 14:08
    0
    Date August 1st

    cash 195,840 debit

    unearned revenue 195,840 credit

    --to record the subcription sale on August 1st--

    Date December 31th

    unearned revenue 81,600 debit

    subscription revenue 81,600 credit

    --to record accrued revenue at Dec 31th--

    Explanation:

    11,520 magazine subscriptions x $ 17 = $ 195,840

    The subcription wil lbe unearned revenue at sale and reveneu will be recognize overtime as the earnings are accrued.

    accrued from August 1 to Dec 20: 5 months

    $ 195,840 x 5 months / 12 months = $ 81,600
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Splish Magazine sold 11,520 annual subscriptions on August 1, 2020, for $17 each. Prepare Splish August 1, 2020, journal entry and the ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers