3. The unadjusted trial balance showed on December 31, 2018 Subscription Revenue ofP390,000. A magazine subscription costs P100 monthly and is payable in advance eitherquarterly or semi-annually. Deliveries are made on or before the 15th of the month. Areview of the subscription contracts revealed the following:No. of QuarterlySubscriptionsNo. of Semi-AnnualSubscription DateSubscriptionSeptember 1October 1100100200100November 1300150Required:Give the adjusting entry on December 31, 2018.b. Set up T accounts for Subscription Income (start with the balance of P390,000) andUnearned Subscription Income (start with zero balance). Post the adjusting entry anddetermine the adjusted balances that should be presented in the financial statements.

The unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15h of the month. A review of the subscription contracts revealed the following: No. of Quarterly Subscriptions No. of Semi-Annual Subscription Date Subscription 100 September 1 October 1 100 200 100 November 1 300 150 Required: Give the adjusting entry on December 31, 2018. b. Set up T accounts for Subscription Income (start with the balance of P390,000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determine the adjusted balances that should be presented in the financial statements.

The unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15h of the month. A review of the subscription contracts revealed the following: No. of Quarterly Subscriptions No. of Semi-Annual Subscription Date Subscription 100 September 1 October 1 100 200 100 November 1 300 150 Required: Give the adjusting entry on December 31, 2018. b. Set up T accounts for Subscription Income (start with the balance of P390,000) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determine the adjusted balances that should be presented in the financial statements.

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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