Question

A Blue Moon Publishing sold 12 month subscriptions of its new magazine at a subscription rate of $18 each....

A Blue Moon Publishing sold 12 month subscriptions of its new magazine
at a subscription rate of $18 each.
Number of subscriptions sold by December 31, 2019                     3,000
INSTRUCTIONS: Prepare the journal entries to record the sale of the subscriptions
on December 31, 2019 and the mailing of the first issue of the magazine on
January 15, 2020.
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Answer #1

Journal entry

Date account and explanation Debit Credit
Dec 31 Cash (3000*18) 54000
Unearned subscription revenue 54000
(To record unearned subscription revenue)
Jan 15 Unearned subscription revenue (54000/12) 4500
Subscription revenue 4500
(To record revenue)
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