Question

For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2.5 points Skipped a. Magnificent Magazines received $12,000 on December 31, 2018, for subscription services related to magazines that will be published and distributed in January through December 2019. b. Walker Window Washing paid $1,200 cash for supplies on December 31, 2018. As of January 31, 2019, $200 of these supplies had been used up. c. Indoor Raceway received $3,000 on December 31, 2018, from race participants for providing services for three races. One race is held in January 31, 2019, and the other two will be held in March 2019. eBook References View transaction list View journal entry worksheet No Date General Journal Debit Credit

Answer 1

Journal entry

No	Date	General Journal	Debit	Credit
1	Dec 31	Cash	12000
		Unearned subscription revenue		12000
2	Jan 31	Unearned subscription revenue (12000/12)	1000
		Subscription revenue		1000
3	Dec 31	Supplies	1200
		Cash		1200
4	Jan 31	Supplies expense	200
		Supplies		200
5	Dec 31	Cash	3000
		Unearned service revenue		3000
6	Jan 31	Unearned service revenue (3000/3)	1000
		Service revenue		1000