Moreno Company publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2017, Moreno sells 15,000 subscriptions beginning with the December issue. Moreno 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.

Instructions

(a) Prepare the entry in November for the receipt of the subscriptions.

(b) Prepare the adjusting entry at December 31, 2017, to record sales revenue recognized in December 2017.

(c) Prepare the adjusting entry at March 31, 2018, to record sales revenue recognized in the first quarter of 2018.