4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. Amagazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually.Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed thefollowing.No. of QuartelySubscription DateSept. 1Oct. 1Nov. 1No. of Semi-Annual SubcriptionSubcriptions100100200100300150Required:a. Give the adjusting entry on December 31, 2018b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned SubscriptionIncome (start with zero balance). Post the adjusting entry and financial statements determine the adjustedbalances that should be presented in the

Unearned Subscription Revenue is the amount received by the business enterprises for the magazines…

4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually. Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the following. Subscriptio n Date Sept. 1 Oct. 1 Nov. 1 No. of Quartely Subcriptions 100 No. of Semi-Annual Subcription 100 200 100 300 150 Required: a. Give the adjusting entry on December 31, 2018 b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted balances that should be presented in the

4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually. Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the following. Subscriptio n Date Sept. 1 Oct. 1 Nov. 1 No. of Quartely Subcriptions 100 No. of Semi-Annual Subcription 100 200 100 300 150 Required: a. Give the adjusting entry on December 31, 2018 b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted balances that should be presented in the

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Record journal entries for the following transactions of Telesco Enterprises. Jan. 1, 2018 Issued a…

A: Notes Receivable :— It is one of the type of promissory note in which principal amount is receivable…

Q: Accrued Product Warranty Fosters Manufacturing Co. warrants its products for one year. The…

A: Warranty expenses has to be booked as per the estimate of warranty claims in past period.

Q: On August 2, Jun Company recelves a $7,700, 90-day, 15.0% note from customer Ryan Albany as payment…

A: The account receivables represents the amount due from the customer. It is recorded as current…

Q: Cube Ice Company received a 120-day, 10% note for $96,000, dated April 9 from a customer on account.…

A: Given: Number of days to maturity = 120 days Discount rate = 10% Maturity value = $96,000 Date 9th…

Q: On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a…

Q: On September 1, 2024, Daylight Donuts signed a $186,000, 6%, six-month note payable with the amount…

A: As interest is payable after 6 months i.e. on March 1,2025 however at the year end as per accrual…

Q: On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional…

A: So, Carrying Value of the note on December 31, year 2 is $27635

Q: XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: Save & Exit On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company…

A: Interest rate = 6% Notes payable value = $ 6900 Period = 60-day

Q: eBook Print Item Dec. 31, 2019 Telesco records interest accumulated for 2019. Dec. 31, 2020 Abe…

A: The transactions for the year ended 31st December 2018 were given. Required Pass the journal…

Q: Sunshine Service Center received a 120-day, 6% note for $40,000, dated April 12 from a customer on…

A: Notes receivable is a negotiable instrument that indicates the claims to be paid at a specific date…

Q: Fosters Manufacturing Co. warrants its products for one year. The estimated product warranty is 3%…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: Tom’s Surf Company, whose fiscal year ends December 31, completed the following transactions…

A: Short-term notes payable: Short-term notes payable is a written promise made by the business to pay…

Q: ces On 1 October 20X6, Halpern Co. borrowed $180,000 from Canada Bank. The note has a two-year term,…

A: Interest on notes payable is calculated by multiplying the amount borrowed with the interest rate…

Q: Valley Designs issued a 90-day, 10% note for $48,000, dated April 22, to Bork Furniture Company on…

A: A journal entry is used to reflect a business deal in a company's accounting records. A journal…

Q: Journalize Apr. 30 Aug. 30 the following, assuming a 360-day year is used for interest computations:…

A: Journal entry : A Journal entry is the demonstration of keeping or making records of any exchanges…

Question

4. The unadjusted trial balance showed on December 31, 2018. Subscription Revenue of P390000. A
magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-anually.
Deliveries are made on or before the 15th of the month. A review of the subcription contracts revealed the
following.
No. of Quartely
Subscriptio
n Date
Sept. 1
Oct. 1
Nov. 1
No. of Semi-Annual Subcription
Subcriptions
100
100
200
100
300
150
Required:
a. Give the adjusting entry on December 31, 2018
b. Set up T accounts Subscription Income (start with the balance of P390000) and Unearned Subscription
Income (start with zero balance). Post the adjusting entry and financial statements determine the adjusted
balances that should be presented in the

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Calculation of Unearned Subscription Income

VIEW

Step 3 Final Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A credit sale of $3,600 is made on July 15, terms 2/10, n/30, on which a retur of $200 is granted on July 18. What amount is receved as payment in full on uly 247
Close Norwood, Inc, signs a $10,500, 9%, six - month note dated November 1, 2018. The interest expense recorded for this note in 2018 will be (Do not round any intermediate calculations, and round your final answer to the nearest dollar.) OA $315 OB. $945 Xc. $473 D. $158
A credit sale of $1800 is made on July 15, terms 4/10, net/30, on which a return of $100 is granted on July 18. What amount is received as payment in full on July 24? a.) $1632 b.) $1800 c.) $1728 d.) $1775
ABC Company received a ten-month, $18,000, 4% note from XYZ Corporation on April 1, 2020 to replace an accounts receivable. Assuming all necessary adjusting entries were made at year end, December 31, 2020, the entry ABC makes on the maturity date would include a: credit to interest receivable for $540. credit to note receivable for $18,600 credit to interest revenue for $600 A. В. С. D. debit to interest revenue for $60 Е. credit to interest revenue for $720
5. On July 8, Alton Co. issued an $80,000, 6%, 120-day note payable to Seller Co. Assame tht t Current Labilities snAvp year of Alton Co. ends July 31. Using the 360-day year in your calculations, what is the amount of interest expense recognized by Alton in the current fiscal year? fiscal $1,200.00 b. $106.67 $306.67 а. с. DIF: Moderate KEY: Bloom's: Application d. $400.00 OBJ: LO: 11-01 PTS: ANS: C NAT: BUSPROG: Analytic 120. c20 000 6%
A. 1. Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a calendar year period. The principal and interest on the note are due on October 1, 20x2. What is the adjusting entry to take up accrued interest income on December 31, 20x1? Dec. 31, 20x1 Interest receivable (200,000 x 12% x 3/12) Interest income to accrue interest income earned but not yet collected 6,000 6,000 2. Entity A is renting out its building to a tenant for a monthly rent of ₱30,000. As of December 31, 20x1, the tenant has not yet paid the rent for the months of November and December. What is the adjusting entry to take up accrued rent income on December 31, 20x1? 3. Entity A issued a 12%, ₱500,000, one-year, note payable on July 1, 20x1. The principal and interest are due on July 1, 20x2. What is the adjusting entry to take up accrued interest expense on December 31, 20x1? 4. Entity A has equipment with a historical cost of ₱1,000,000. The equipment was estimated to have a…
PART - E Toner Limited (“Toner") borrows $180,000 on 1 July 2020 from Lighthouse Bank and signs a $180,000, 5%, 1-year promissory note. Assuming yearly accounting periods and a financial year end balance date of 31 December. Required: (i) Prepare the general journal entries to record the issuance of the promissory note. (ii) Prepare the general journal entries to record the adjusting journal entries as at 31 December 2020. (iii) Prepare the general journal entries to record the repayment on 1 July of 2021.
Indicate the tramsaction prie for this situation and when revenue will be recognized Groupo sels goods to Magnus for $500,000 payment due in two installments first installment payable in 18 months and the second paymend due 6 months later. The present value of the future payments is $464,000 O $500.000 recognized at the point of sale O $464.000 reciognized at the point of sale and recognized interest revenue over the payment period O $500.000 recognize $250,000 in 18 months and $250,000 recognized 6 months later $500.000 recognize $464 000 revenue and $36.000 of interest revenue
What amount must be remitted if invoices dated June 28 for $815, July7 for $780 and July 14 for $895, all terms 2/10 E.O.M., are paid together on August 7? Round to the nearest cent SAVE PROG 9°C hp
On June 1, Davis Inc. issued an $89,300, 8%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia ends June 30. Using a 360-day year, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar. a. $1,806 Ob. $7,144 O c. $595 Od. $1,191 B
A noninterest-bearing note is issued on February 12 of a non-leap year in the amount of $14,250. It has a term of 10 months. It is sold on September 22 with a negotiated interest rate of 5%. Determine the proceeds of the sale. Add 3 days grace period Select one Oa $12110 64 Ob S14007.89 Oe S13099 27 Od none Check
On November 1, Bahama Cruise Lines borrows $21 millon and Issues a six-month, 9% note payable. Interest Is payable at maturity. Record the Issuance of the note and the appropriate adjustment for Interest expense at December 31, the end of the reporting perlod. (If no entry Is requlred for a particular transactlon/event, select "No Journal Entry Required" In the first account fleld. Enter your answers In dollars, not In mlllons (I.e. 5 should be entered as 5,000,000).) View transaction list Journal entry worksheet 1 Record the issuance of the note. Note: Enter debits before credits. Date General Journal Debit Credit November 01 Record entry Clear entry View general jourmal