Question: Valenti Company Ltd publishes a monthly sports magazine Fishing Preview

Valenti Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2014, Valenti sells 6,300 subscriptions for cash, beginning with the December issue. Valenti prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.

(a) Prepare the entry in November for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31, 2014, to record subscription revenue in
December 2014.
(c) Prepare the adjusting entry at March 31, 2015, to record subscription revenue in the first quarter of 2015.

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  • CreatedApril 07, 2014
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