A company received $5,000 for 100 one−year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance. A. debit to Note Payable for $5,000 B. credit to Accounts Payable for $5,000 C. credit to Unearned Revenue for $5,000 D. debit to Prepaid Expenses for $5,000

A company received $5,000 for 100 one−year subscriptions on July 1. The journal entry to record this cash receipt would include a ________. The company uses a liability account for revenue received in advance. A. debit to Note Payable for $5,000 B. credit to Accounts Payable for $5,000 C. credit to Unearned Revenue for $5,000 D. debit to Prepaid Expenses for $5,000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 1AP

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
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