Nature in Depth, an outdoor magazine, collected $3,000 on August 1 for one-year subscriptions from subscribers in

Question:

Nature in Depth, an outdoor magazine, collected $3,000 on August 1 for one-year subscriptions from subscribers in advance. Journalize and post the adjusting entry on December 31 to record the revenue that Nature in Depth has earned, assuming no other adjusting entries have been made for the year. Compute the balances of the two accounts involved.