Brief Exercise 255

Mantle Publications publishes a golf magazine for women. The magazine sells for $4.00 a copy
on the newsstand. Yearly subscriptions to the magazine cost $36 per year (12 issues). During
December 2016, Expert Publications sells 4,000 copies of the golf magazine at newsstands and
receives payment for 6,000 subscriptions for 2017. Financial statements are prepared monthly.

Your answer is correct.

Prepare the December 2016 journal entries to record the newsstand sales and subscriptions
received. (Credit account titles are automatically indented when the amount is
entered. Do not indent manually.)

No Account Titles and

Debit Credit
. Explanation

m
er as
1. Cash
16,000

co
eH w
Sales Revenu

o.
16,000

rs e
ou urc
(To record sales)

Cash
216,000
o
aC s

Unearned Sub
216,000
vi y re

(To record subscriptions

received)
ed d
ar stu

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

SHOW ANSWER
is
Th

LINK TO TEXT
sh

Your answer is correct.

Prepare the necessary adjusting entry on January 31, 2017. The January 2017 issue has been
mailed to subscribers. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually.)

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 Account Titles and Explanation Debit Credit

Unearned Sub 18,000

Subscription R 18,000

Click if you would like to Show Work for this Open Show
question: Work

SHOW LIST OF ACCOUNTS

SHOW SOLUTION

SHOW ANSWER

LINK TO TEXT

m
er as
co
eH w
o.
rs e
ou urc
o
aC s
vi y re
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000836524935 from CourseHero.com on 12-10-2021 00:01:56 GMT -06:00

https://www.coursehero.com/file/40943008/Brief-Exercise-255docx/
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