b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Unearned subscription revenue

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new
subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100
new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December.
Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust
the Subscription Revenue account and the Unearned Subscription Revenue account.
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Unearned subscription
revenue
$
Transcribed Image Text:es b. Caden started a new publication called Contest News. Its subscribers pay $36 to receive 12 monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year-end journal entry that Caden must make as of December 31 to adjust the Subscription Revenue account and the Unearned Subscription Revenue account. Step 1: Determine what the current account balance equals. Step 2: Determine what the current account balance should equal. Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. Unearned subscription revenue $
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