Online Gaming collects cash from subscribers in advance and then provides online games to subscribers over a
Question:
Online Gaming collects cash from subscribers in advance and then provides online games to subscribers over a one-year period.
Requirements
1. Record the journal entry to record the original receipt of $180,000 cash.
2. Record the adjusting entry that Online Gaming makes to record earning $8,000 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.
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Step by Step Answer:
Initial Balances Account Debit Credit Cash 180000 Unearned Subscription Revenu...View the full answer
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Related Book For 
Horngrens Financial & Managerial Accounting
ISBN: 9780136516255
7th Edition
Authors: Tracie Miller Nobles, Brenda Mattison
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