Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview . Subs
ID: 2579532 • Letter: B
Question
Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2017, Blossom sells 6,520 subscriptions for cash, beginning with the December issue. Blossom 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
SHOW LIST OF ACCOUNTS
SHOW SOLUTION
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LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT
Date
Account Titles and Explanation
Debit
Credit
Blossom Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2017, Blossom sells 6,520 subscriptions for cash, beginning with the December issue. Blossom 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 a/c (6520*30) 195600 Unearned subscription revenue a/c 195600 2017 Dec 31 Unearned subscription revenue a/c (195600/12) 16300 subscription revenue a/c 16300 2018 Mar 31 Unearned subscription revenue a/c (195600/12)*3 48900 subscription revenue a/c 48900