Flores Company publishes a monthly sports magazine, Hunting Preview. Subscriptions to the magazine cost $20 per year. During October 2013, Flores sells 24,000 subscriptions beginning with the November issue. Flores prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
Instructions
(a) Prepare the entry in October for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31, 2013, to record subscription revenue earned in December 2013.
(c) Prepare the adjusting entry at March 31, 2014, to record subscription revenue earned in the first quarter of 2014.

Question

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The Answer of Flores Company publishes a monthly sports magazine, Hunting Preview. Subscriptions to the magazine cost $20 per year. During October 2013, Flores sells 24,000 subscriptions beginning with the November issue. Flores prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue.
Instructions
(a) Prepare the entry in October for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31, 2013, to record subscription revenue earned in December 2013.
(c) Prepare the adjusting entry at March 31, 2014, to record subscription revenue earned in the first quarter of 2014.

Flores Company Publishes a Monthly Sports Magazine, Hunting Preview