Instructions (a) Prepare the entry in NOV the receipt of the subscriptions. (b) Prepare the adjusting entry at DEC 31, 2022, to record one month's subscription revenue for DEC 2022. (c) Prepare the adjusting entry at MAR 31, 2023, to record subscription revenue in the first quarter of 2023

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Company Ltd. publishes a monthly magazine called Fishing Preview. Subscriptions cost
$28 per year. In NOV 2022, Cassini sells 6,300 (annual) subscriptions for cash,
beginning with the DEC issue.
Cassini prepares financial statements quarterly and recognizes subscription revenue at
the end of the quarter. The company uses the accounts Unearned Subscription
Revenue and Subscription Revenue. The company has a DEC 31 year-end.
Instructions
(a) Prepare the entry in NOV the receipt of the subscriptions.
(b) Prepare the adjusting entry at DEC 31, 2022, to record one month's subscription
revenue for DEC 2022.
(c) Prepare the adjusting entry at MAR 31, 2023, to record subscription revenue in the
first quarter of 2023.
(a)
NOV
(b)
DEC 31
(c)
Mar 31
Transcribed Image Text:Company Ltd. publishes a monthly magazine called Fishing Preview. Subscriptions cost $28 per year. In NOV 2022, Cassini sells 6,300 (annual) subscriptions for cash, beginning with the DEC issue. Cassini prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a DEC 31 year-end. Instructions (a) Prepare the entry in NOV the receipt of the subscriptions. (b) Prepare the adjusting entry at DEC 31, 2022, to record one month's subscription revenue for DEC 2022. (c) Prepare the adjusting entry at MAR 31, 2023, to record subscription revenue in the first quarter of 2023. (a) NOV (b) DEC 31 (c) Mar 31
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