1. Subscriptions to Kat Company's magazine cost $16 per year. During November 2022, Kat Company sells 12,000 subscriptions beginning with the December issue. Kat Company prepares financial statements quarterly and recognizes revenue for magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.Prepare the entry in November for the receipt of the subscriptions.Prepare the adjusting entry at December 31, 2022, to record revenue to be recognized in December 2022.Prepare the adjusting entry at March 31, 2023, to record revenue to be recognized in the first quarter of 2023.Show steps please.

For the purpose of keeping track of commercial transactions, the business entities document them in…

Answered: Subscriptions to Kat Company's magazine…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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1. Subscriptions to Kat Company's magazine cost $16 per year. During November 2022, Kat Company sells 12,000 subscriptions beginning with the December issue. Kat Company prepares financial statements quarterly and recognizes revenue for magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.

Prepare the entry in November for the receipt of the subscriptions.
Prepare the adjusting entry at December 31, 2022, to record revenue to be recognized in December 2022.
Prepare the adjusting entry at March 31, 2023, to record revenue to be recognized in the first quarter of 2023.

Show steps please.

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