At Sea, a cruise industry magazine, collected $480,000 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 basis of accounting
Provide the adjusting entry needed on June 30. (Ignore explanation). Assume the magazine initially records a liability for the subscription revenue.
What will be an ideal response
Unearned Revenue 40,000
Subscription Revenue 40,000 .Monthly subscription amount = $480,000 / 12 months = $40,000
Business
You might also like to view...
Toys "R" Us' profit margin ratio for 2001 and 2000 respectively equals
A. 5.6% and 3.7% B. 3.8% and 4.4% C. 3.6% and 2.4% D. 31.0% and 29.9%
Business
Once you open a mutual fund account, you can use EFT to have money directly withdrawn from your bank account to pay yourself first
Indicate whether this statement is true or false.
Business