Asked by Sasha Munir on May 01, 2024
Verified
During December 2016 Apartment Publishing sold 2500 12-month annual magazine subscriptions at a rate of $20 each. The first issues were mailed in February 2017. Prepare the entries on Apartment's books to record the sale of the subscriptions and the mailing of the first issues.
Annual Magazine Subscriptions
The payment made for a year-long subscription to a magazine, usually recognized as an expense over the subscription period.
First Issues
Often refers to the initial release or offering of securities, products, or publications to the public.
- Design journal entries for handling payroll transactions, with deductions, taxes, and net compensation detailed.
Verified Answer
KA
Katrina AttardMay 03, 2024
Final Answer :
December 2016 Cash 50,000 Unearned Subscription Revenue50,000 (2,500×$20=$50,000) February 2017 Unearned Subscription Revenue4,167 Subscription Revenue 4,167 ($50,000÷12=$4,167) \begin{array}{llr} \text { December 2016 } & \text { Cash } &50,000\\& \text { Unearned Subscription Revenue} &&50,000\\ &\text { \((2,500 \times \$ 20=\$ 50,000)\) } &\\\\ \text {February 2017 } & \text { Unearned Subscription Revenue} &4,167\\ &\text { Subscription Revenue } &&4,167\\& \text { \( (\$ 50,000 \div 12=\$ 4,167) \) } &\\\end{array} December 2016 February 2017 Cash Unearned Subscription Revenue (2,500×$20=$50,000) Unearned Subscription Revenue Subscription Revenue ($50,000÷12=$4,167) 50,0004,16750,0004,167
Learning Objectives
- Design journal entries for handling payroll transactions, with deductions, taxes, and net compensation detailed.