Please Help! I do not understand!

FratBro23
Category:
Accounting
Price: $20 USD

Question description

LaCrema Company publishes a monthly decorating magazine, Remodelista. Subscriptions to the magazine cost $25 per year. During October 2014, LaCrema sells 18,000 subscriptions beginning with the November issue. LaCrema prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscriptions and Subscription Revenue.

Instructions

(a) Prepare the entry in October for the receipt of the subscriptions.

(b) Prepare the adjusting entry at December 31, 2014, to record subscription revenue earned in December 2014.

(c) Prepare the adjusting entry at March 31, 2015, to record subscription revenue in the first quarter pf 2015.

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UCLA
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