Journalizing and posting an adjusting entry for unearned revenue Eastside Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period. Requirements Record the journal entry to record the original receipt of $180,000 cash. Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
Journalizing and posting an adjusting entry for unearned revenue Eastside Magazine collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period. Requirements Record the journal entry to record the original receipt of $180,000 cash. Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Journalizing and posting an
Eastside Magazine
collects cash from subscribers in advance and then mails the magazines to subscribers over a one-year period.
Requirements
- Record the
journal entry to record the original receipt of $180,000 cash. - Record the adjusting entry that Eastside Magazine makes to record earning $8,000 in subscription revenue that was collected in advance.
- Using T-accounts,
post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)
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