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13 January, 15:36

Northern Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a​ one-year period.

a. Record the journal entry to record the original receipt of $150,000 cash.

b. Record the adjusting entry that southern magazine makes to record earning $ 9,000 in subscription revenue that was collected in advance.

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  1. 13 January, 15:52
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    The Journal entries are as follows:

    (a) Cash A/c Dr. $150,000

    To subscriber A/c $150,000

    (To record the original receipt of $150,000 cash)

    (b) Subscriber A/c Dr. $9,000

    To Revenue from magazine A/c $9,000

    (To record the earning $ 9,000 in subscription revenue that was collected in advance)
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