$8$

a$.$ Tao Co$.$ receives $$11,600$ cash in advance for four months of evenly planned legal services beginning on October $1.$ Tao records it by debiting Cash and crediting Unearned Revenue both for $$11,600.$ It is now December $31,$ and Tao has provided legal services as planned. What adjusting entry should Tao make to account for the work performed from October $1$ through December $31?$

$3$

points

Skipped

References

$\backslash$table$[[,,,],[,,,$Unearned revenue$],[$Step $1$: Determine what the current account balance equals.,,,,$],[,,,,],[$Step $2$: Determine what the current account balance should equal.,,,,$],[,,,,],[$Step $3$: Record the December $31$ adjusting entry to get from step $1$ to step $2.,,,,],[,,,,]]$

b$.$ Caden started a new publication called Contest News. Its subscribers pay $$48$ to receive $12$ monthly issues. With every new subscriber, Caden debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has $100$ new subscribers as of July $1.$ It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the year$-$end journal entry that Caden must make as of December $31$ to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.