Journalizing and posting an adjusting entry for unearned revenue Eastside Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period. Requirements Record the journal entry to record the original receipt of $180,000 cash. Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
Journalizing and posting an adjusting entry for unearned revenue Eastside Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period. Requirements Record the journal entry to record the original receipt of $180,000 cash. Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 4PB: Review the following transactions and prepare any necessary journal entries for Woodworking...
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Question
Journalizing and posting an
Eastside Magazine
collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period.
Requirements
- Record the
journal entry to record the original receipt of $180,000 cash. - Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance.
- Using T-accounts,
post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
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