Waterway Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2020, Waterway sells 24,500 subscriptions beginning with the December issue. Waterway prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. 1. Prepare the entry in November for the receipt of the subscriptions. 2.Prepare the adjusting entry at December 31, 2020, to record sales revenue recognized in December 2020. 3.Prepare the adjusting entry at March 31, 2021, to record sales revenue recognized in the first quarter of 2021
Waterway Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2020, Waterway sells 24,500 subscriptions beginning with the December issue. Waterway prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. 1. Prepare the entry in November for the receipt of the subscriptions. 2.Prepare the adjusting entry at December 31, 2020, to record sales revenue recognized in December 2020. 3.Prepare the adjusting entry at March 31, 2021, to record sales revenue recognized in the first quarter of 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Waterway Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $30 per year. During November 2020, Waterway sells 24,500 subscriptions beginning with the December issue. Waterway prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
1. Prepare the entry in November for the receipt of the subscriptions.
2.Prepare the adjusting entry at December 31, 2020, to record sales revenue recognized in December 2020.
3.Prepare the adjusting entry at March 31, 2021, to record sales revenue recognized in the first quarter of 2021
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