Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscribers is credited to an account called Magazine Subscriptions Received in Advance. On December 31, 2014, the end of the company’s fiscal year, the balance of this account is $840,000. Expiration of subscriptions revenue is as follows. During 2014- $175,000 During 201- $5415,000 During 2016- $250,000 Prepare the adjusting entry for December 31, 2014.
Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscribers is credited to an account called Magazine Subscriptions Received in Advance. On December 31, 2014, the end of the company’s fiscal year, the balance of this account is $840,000. Expiration of subscriptions revenue is as follows. During 2014- $175,000 During 201- $5415,000 During 2016- $250,000 Prepare the adjusting entry for December 31, 2014.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carmel of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscribers is credited to an account called Magazine Subscriptions Received in Advance. On December 31, 2014, the end of the company’s fiscal year, the balance of this account is $840,000. Expiration of subscriptions revenue is as follows.
During 2014- $175,000
During 201- $5415,000
During 2016- $250,000
Prepare the
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