Question

Metro Magazine collects cash from subscribers in advance and then mails the ­magazines to subscribers over a one- year period.

Requirements
1. Record the journal entry to record the original receipt of $ 170,000 cash.
2. Record the adjusting entry that Metro Magazine makes to record earning $ 12,000 in subscription revenue that was collected in advance.
3. Using T-accounts, post the journal entry and adjusting entry to the accounts involved and show their balances after adjustments. (Ignore the Cash account.)



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  • CreatedJanuary 16, 2015
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