Professional Documents
Culture Documents
Problem 1-16
Unearned Revenues
Nature of Unearned Revenues
REQUIRED:
Cash P 5,500,000
Unearned revenue from
magazine subscriptions P 5,500,000
To record receipt of advance payment from subscribers.
Total Unearned Revenues from Magazine Subscriptions, Dec. 31, 2019 = P5,000,000
Journal entries for 2020
Cash P 7,000,000
Unearned revenue from
magazine subscriptions P 7,000,000
To record receipt of advance payment from subscribers.
Total Unearned Revenues from Magazine Subscriptions, Dec. 31, 2020 = P6,300,000
T-account analysis for unearned revenue