Accrual concept is followed by the organization to record the transactions. The accrual basis of accounting states that an organization should record the expenses and revenues when these are incurred or earned and not when these are paid or received. To identify & analyze: The transaction to record the sale of yearly subscription and the transaction.

Question

On October 1, Year 1, Sparky Co. Magazine sold one-year subscriptions in advance, collecting a total amount of $12.000 upfront. What is the required adjusing journal entry at the end of the month? Dr Subscriplion Revenue $12.000, Cr Uneamed Subscripton Revenue $12.000 Dr Subscription Revenue $1.000. Cr Uneamed Subscrption levenue $1,000 Dr Uneamed Subscription Revenue $12.000, Cr Subscrpton Revenue $12.000 Dr Uneamed Subscription Revenue $1.000: Cr Subscription Revenue $1.000

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 4, Problem 4.11.1E

To determine

Introduction: Accrual concept is followed by the organization to record the transactions. The accrual basis of accounting states that an organization should record the expenses and revenues when these are incurred or earned and not when these are paid or received.

To identify & analyze: The transaction to record the sale of yearly subscription and the transaction.

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On October 1, Year 1, Sparky Co. Magazine sold one-year subscriptions in advance, collecting a total amount of $12.000 upfront. What is the required adjusing journal entry at the end of the month? Dr Subscriplion Revenue $12.000, Cr Uneamed Subscripton Revenue $12.000 Dr Subscription Revenue $1.000. Cr Uneamed Subscrption levenue $1,000 Dr Uneamed Subscription Revenue $12.000, Cr Subscrpton Revenue $12.000 Dr Uneamed Subscription Revenue $1.000: Cr Subscription Revenue $1.000

Bonita Company typically sells subscriptions on an annual basis and publishes six times a year. The magazine sells 85000 subscriptions in January at $15 each. What entry is made in January to record the sale of the subscriptions? Subscriptions Receivable Subscription Revenue Prepaid Subscriptions Cash Subscriptions Receivable Unearned Subscription Revenue Cash Unearned Subscription Revenue 1275000 1275000 225000 1275000 1275000 1275000 225000 1275000

Ayayai Corp. typically sells subscriptions on an annual basis and publishes 6 times a year. The magazine sells 84600 subscriptions in January at $9 each. What entry is made in January to record the sale of the subscriptions? O Cash 761400 Unearned Subscription Revenue 761400 O subscriptions Receivable Unearned Subscription Revenue 126900 126900 O Subscriptions Receivable Subscription Revenue 761400 761400 O Prepaid Subscriptions 761400 Cash 761400

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 4, Problem 4.11.1E

To determine

Introduction: Accrual concept is followed by the organization to record the transactions. The accrual basis of accounting states that an organization should record the expenses and revenues when these are incurred or earned and not when these are paid or received.

To identify & analyze: The transaction to record the sale of yearly subscription and the transaction.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 4, Problem 4.11.1E

To determine

Introduction: Accrual concept is followed by the organization to record the transactions. The accrual basis of accounting states that an organization should record the expenses and revenues when these are incurred or earned and not when these are paid or received.

To identify & analyze: The transaction to record the sale of yearly subscription and the transaction.

Expert Solution & Answer

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See solution

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 4, Problem 4.11.1E

To determine