Please Help! I do not understand!

timer Asked: Dec 15th, 2014

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.


(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) Studypool Tutor
School: Duke University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors