Carla Vista Co. Ltd. publishes a monthly sports magazine, Fishing Preview . Subs
ID: 2526305 • Letter: C
Question
Carla Vista Co. Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2017, Carla Vista sells 7,280 subscriptions for cash, beginning with the December issue. Carla Vista 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 December 31 year-end. Carla Vista Co. Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2017, Carla Vista sells 7,280 subscriptions for cash, beginning with the December issue. Carla Vista 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 December 31 year-end. Date Account Titles and Explanation Debit Credit Nov. SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS Date Account Titles and Explanation Debit Credit Dec. 31 SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS Date Account Titles and Explanation Debit Credit Mar. 31 SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTSExercise 10-7
Carla Vista Co. Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2017, Carla Vista sells 7,280 subscriptions for cash, beginning with the December issue. Carla Vista 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 December 31 year-end.Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Nov Cash (7280*30) 218400 Unearned susbcription revenue 218400 (To record unearned revenue) Dec 31 Unearned susbcription revenue (218400/12) 18200 Subscription revenue 18200 (To record adjusting entry) Mar 31 Unearned susbcription revenue (218400/12*3) 54600 Subscription revenue 54600 (To record adjusting entry)