Explore, a travel magazine, collected $500,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting
Provide the journal entry for collection of cash in May. (Ignore explanation). Assume the magazine initially records a liability for the subscription revenue.
What will be an ideal response
Cash 500,000
Unearned Revenue 500,000
You might also like to view...
According to research which of the following is considered the most stressful life event?
A. Retirement B. Change in residence C. Death of a spouse D. Fired at work E. Child leaving home
The main reason that drug companies today produce only about half as many new drugs each year compared to previous decades is:
a. there are fewer diseases that drugs can be made for b. people are turning to natural medicine rather than drugs c. the high cost and long time frame involved in clearing all the FDA hurdles to market a new drug d. the lack of science majors graduating in the United States e. the economic downturn