Explanation Adjusting entry: Adjusting entry can be defined as a special journal entry that is prepared at the end of the accounting period, with the objective to make necessary adjustments in associated accounts concerning prepaid and accruals. Prepare the t-accounts for subscription revenue and unearned subscription revenue as shown below. Subscription revenue account: Subscription revenue a/c Date Particulars Ref. Debit ($) Credit ($) Debit ($) Credit ($) Mar 31 Cash 24,000 Unearned subscription revenue 4,000

2nd Edition

ISBN: 9780134730370

Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

Publisher: PEARSON

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Chapter 4, Problem 4.22BE

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To prepare: The t-accounts for subscription revenue and unearned subscription revenue for G Company before and after preparing adjusting entries.

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Chapter 4, Problem 4.21BE

Chapter 4, Problem 4.23BE

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The t-accounts for subscription revenue and unearned subscription revenue for G Company before and after preparing adjusting entries .

Solution Summary: The author explains how to prepare t-accounts for subscription revenue and unearned subscription revenues for G Company before and after preparing adjusting entries.

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To prepare: The t-accounts for subscription revenue and unearned subscription revenue for G Company before and after preparing adjusting entries.

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