Chordall Authors Company circulates a monthly magazine, charging $36 to subscribers for a 12-month subscription. Subscribers are required to forward the entire $36 yearly subscription fee before Chordall Authors Company will furnish the subscriber with the magazine. Chordall Authors Company sold 300 magazine subscriptions in the month of March, while the balance in the Unearned Subscription Revenue account was $20,000 on March 1, 2009. After the necessary adjusting entry for March, the balance in the Unearned Subscription Revenue account was $25,200. 

Required: 1. Prepare the appropriate journal entry for Chordall Authors Company as of March 31. 2. How would net income be affected for the month ending March 31 if Chordall Authors Company did not record the above entry?

Answer rating: 100% (QA)

1 The appropriate journal entry for Chordall Authors Company as of March 31 would be Unearned Subscr... View the full answer