Respuesta :
The business has an obligation as a result of receiving $240 in advance from a customer for a service that has not yet been rendered magazine subscriptions. This will be recorded by the company as a credit to the liabilities account for Unearned Service Revenue and a debit to the cash account.
As of December 31, the company had been supplying magazines for three months and had generated income throughout that time. Revenue every month is equal to 240 / 12 = 20 for the three months.
20 * 3 = 60 for three months.
This will result in a credit to subscription revenue and a debit to unearned subscription income being recorded by the company. debiting $240 from Cash
Credit $240 in earned but postponed income
being entries for money paid in advance to subscribe to a magazine annually.
c. Unearned/deferred revenue debit $60\sCredit $60 in revenue from subscriptions
entries must acknowledge revenue generated by December 31
When clients give the business cash in advance, the company has a liability since it owes money because the cash was received in the past.
Since On October 1, a consumer paid $240 in advance for a yearly magazine subscription to Sponge Bob, Inc. One magazine is given out each month.
Earnings per month = 1/12 x $240 = $20
For Sponge Bob, Inc., entries are due on October 1 and are debit cash account. Unearned/deferred revenue credit: $240
entrants in drawings for money paid forward for a yearly magazine subscription.
publications delivered to the consumer for three months by December 31
earning money 3 × $20 =$60
Adjusting entries must be made before December 31.
$60 Credit Debit Unearned or delayed revenue $60 in revenue from subscriptions
entries must acknowledge revenue generated by December 31
Learn more about magazine subscription hear :
https://brainly.com/question/14813348
#SPJ4
