Ivanhoe Publications publishes a golf magazine for women. The magazine sells for $4 a copy on the newsstand. Yearly subscriptions to the magazine cost $45 per year (12 issues). During December 2019, Ivanhoe Publications sells 5,900 copies of the golf magazine at newsstands and receives payment for 7,500 subscriptions for 2020. Financial statements are prepared monthly. Prepare the December 2019 journal entries to record the newsstand sales and subscriptions received. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Question

Business

Deacon Sweeney

24 March, 07:54

Ivanhoe Publications publishes a golf magazine for women. The magazine sells for $4 a copy on the newsstand. Yearly subscriptions to the magazine cost $45 per year (12 issues). During December 2019, Ivanhoe Publications sells 5,900 copies of the golf magazine at newsstands and receives payment for 7,500 subscriptions for 2020. Financial statements are prepared monthly. Prepare the December 2019 journal entries to record the newsstand sales and subscriptions received. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

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Babykins · Answer 1

Debit Cash with $361,100; credit Newsstand sales revenue with $23,600, and credit Subscription in advance with $337,500.

Explanation:

News stand sales revenue = $4 * 5,900 = $23,600

Subscription received for 2020 = $45 * 7,500 = $337,500

The December 2019 journal entries will be as follows:

Details Dr ($) Cr ($)

Cash 361,100

Newsstand sales revenue 23,600

Subscription in advance 337,500

To record cash received form newsstand and subscription for 2020