Satterfield publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $18 per year. During
Question:
Satterfield publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $18 per year. During November 2021, Satterfield sells 15,000 subscriptions beginning with the December issue. Satterfield prepares financial statements quarterly and recognizes revenue for magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.
Instructions
a. Prepare the entry in November for the receipt of the subscriptions.
b. Prepare the adjusting entry at December 31, 2021, to record revenue to be recognized in December 2021.
c. Prepare the adjusting entry at March 31, 2022, to record revenue to be recognized in the first quarter of 2022.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak