Sheridan Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $15 per year. During November 2017, Sheridan sells 12,880 subscriptions for cash, beginning with the December issue. Sheridan 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. The company has a December 31 year-end.
Prepare the entry in November for the receipt of the
subscriptions. (Credit account titles are automatically indented
when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Nov.
enter an account title for the entry in November for the receipt of
the subscriptions
enter a debit amount
enter a credit amount
enter an account title for the entry in November for the receipt of
the subscriptions
enter a debit amount
enter a credit amount
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Prepare the adjusting entry at December 31, 2017, to record
subscription revenue in December 2017. (Credit account titles are
automatically indented when amount is entered. Do not indent
manually.)
Date
Account Titles and Explanation
Debit
Credit
Dec. 31
enter an account title for the adjusting entry on December 31,
2017
enter a debit amount
enter a credit amount
enter an account title for the adjusting entry on December 31,
2017
enter a debit amount
enter a credit amount
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Prepare the adjusting entry at March 31, 2018, to record
subscription revenue in the first quarter of 2018. (Credit account
titles are automatically indented when amount is entered. Do not
indent manually.)
Date
Account Titles and Explanation
Debit
Credit
Mar. 31
enter an account title for the adjusting entry on March 31,
2018
enter a debit amount
enter a credit amount
enter an account title for the adjusting entry on March 31,
2018
enter a debit amount
enter a credit amount
| Date | Account tiltes and explanation | Debit | Credit | ||||
| Nov. | Cash | (12880*15) | 193200 | ||||
| Unearned revenue | 193200 | ||||||
| (Receipt of subscription starting from next month) | |||||||
| Dec 31. | Unearned revenue | 193200*(1/12) | 16100 | ||||
| Subscription revenue | 16100 | ||||||
| (Subscription revenue for one moth recorded) | |||||||
| Mar 31. | Unearned revenue | 193200*(3/12) | 48300 | ||||
| Subscription revenue | 48300 | ||||||
| (Subscription revenue for three moths recorded) | |||||||
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