Final answer:
The adjusting entry for Gold Magazine would depend on the specific financial activities that need to be recorded to accurately reflect the income and expenses in the correct accounting period. Examples include adjusting for unearned revenue or accrued expenses.
Step-by-step explanation:
The question refers to making an adjusting entry on December 31, 2015, for Gold Magazine. In accounting, adjusting entries are made in the general journal at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred. The entry could be related to a number of scenarios such as accrued expenses, prepaid expenses, accrued revenues, or unearned revenues.
For instance, if Gold Magazine has received cash for subscriptions that will be serviced in the next fiscal year, an adjusting entry for unearned revenue would be necessary to reflect this. The entry would debit unearned revenue and credit the revenue account to recognize the revenue in the correct accounting period.
Alternatively, if Gold Magazine incurred expenses but has not yet paid or recorded them, an adjusting entry for accrued expenses would be needed. This would involve debiting an expense account and crediting an accruals liability account to recognize the expense in the period it was incurred, despite not yet being paid.