Chapter 11, Problem 11.4E

(a)

To determine

Journal Entries: Entries to record the financial transactions during each accounting period are called journal entries. Income, liabilities and the giver are credited if the balance is increased and debited if the balance is reduced Expenses, assets and the receiver are debited if the balance is increased and credited if the balance is reduced in a journal entry.

Adjusting Journal Entries: Companies need to record the journal entries at the end of accounting period to apply the matching and revenue recognition principles. These journal entries are adjusting entries.

Unearned Revenue: Revenue is the amount earned in exchange of good(s) or service(s). It is called unearned revenue when the revenue is received before the delivery of the related good or service. It is a current liability to be reported on the balance sheet.

To prepare: The journal entry for receipt of subscriptions.

(b).

To determine

To prepare: The adjusting journal entry for subscription revenue recognized.

(c).

To determine

To prepare: The adjusting journal entry for subscription revenue recognized.