Question: City Life Inc of Fargo North Dakota publishes a monthly

City Life, Inc. of Fargo, North Dakota, publishes a monthly magazine featuring local restaurant reviews and upcoming social, cultural, and sporting events. Subscribers pay for subscriptions either one year or two years in advance. Cash received from subscribers is credited to an account called Magazine Subscriptions Received in Advance.
On December 31, 2011, the end of the company’s fiscal year, the balance of Magazine Subscriptions Received in Advance is $420,000. Expiration of subscriptions revenue is as follows:
During 2011 ...... $ 87,500
During 2012 ...... 207,500
During 2013 ...... 125,000
Record the adjusting entry for December 31, 2011.

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  • CreatedSeptember 10, 2014
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