Crane Company publishes a monthly sports magazine, Fishing Preview. Subscription to the magazine cost $30 per year. During November 2020,

Question

Crane Company publishes a monthly sports magazine, Fishing Preview. Subscription to the magazine cost $30 per year. During November 2020, Crane sells 25,000 subscriptions beginning with the December issue. Crane prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. Prepare the entry in November for the receipt of the subscription

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Kinsley 1 month 2021-10-14T04:46:38+00:00 1 Answer 0 views 0

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    2021-10-14T04:48:12+00:00

    Journal entry

    Explanation:

                                      Books of (—-Limited)

                                          Journal Entry

    Date         Account Title and Explanation            Debit         Credit

                  Cash / Bank                          A/c  Dr.     $750,000

                    To Unearned Subscription A/c                               $750,000

                                (Being Unearned Subscription)

    Computation:

    Amount of Unearned Subscription =  25,000 × $30

    Amount of Unearned Subscription =  %750,000

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