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 2017, Satterfield sells 15,000 subscriptions beginning with the December issue. Satterfield prepares financial statements quarterly and recognizes revenue earned 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, 2017, to record revenue earned in December 2017.

Financial Statements
Financial 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...