Question

On October 1, 2019, Paige Turner Publishing received $59,400 in cash for subscriptions covering one year, recording the entry as a debit to Cash and a credit to Unearned Subscriptions. The correct adjusting entry at December 31, 2019, is

Answer 1

on 31st Dec 2019 the entry would be

Subscription Earned $14,850 ($59400*3/12) Debit

Unearned Subscriptions $ 44500( 59,400- 14,850) Debit

Cash $59,400 (credit)