It’s Bead-i-ful is a magazine for creators of bead jewelry. The magazine currently has 6,900 subscribers who have paid $48 per year for the publication. During the week ending July 3, the magazine sold 120 annual subscriptions. The magazine is mailed on the first of each month.
Required:
(a) Prepare the journal entry to record the subscriptions for the week of July 3.
(b) What journal entry should the magazine make on August 1?
(c) On December 31, its Bead-i-ful went out of business. At that time, the magazine owed 4,100 magazines to its customers. Prepare the journal entry necessary to refund the subscriber’s payments.