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During December 2018, Nova Company sold 100,000, 12-month subscriptions at the rate of $30 each. Prepare...

During December 2018, Nova Company sold 100,000, 12-month subscriptions at the rate of $30 each. Prepare the entries on Nova Company to record the sale of the subscriptions and the mailing of the first issues.

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Answer #1
Date account and explanation Debit credit
Cash (100000*30) 3000000
Unearned subscription revenue 3000000
(To record unearned revenue)
Unearned subscription revenue (3000000/12) 250000
Subscription revenue 250000
(To record first issue)
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