LaCrema Company publishes a monthly decorating magazine Remodelista. Subscriptions to the magazine cost $25 per year. During October 2016 LaCrema sells 18000 subscriptions beginning with the November issue. LaCrema prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscriptions and Subscription Revenue.
Instructions
(a) Prepare the entry in October for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31 2016 to record subscription revenue earned in December 2016.
(c) Prepare the adjusting entry at March 31 2017 to record subscription revenue earned in the first quarter of 2017.

Question

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The Answer of LaCrema Company publishes a monthly decorating magazine Remodelista. Subscriptions to the magazine cost $25 per year. During October 2016 LaCrema sells 18000 subscriptions beginning with the November issue. LaCrema prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts Unearned Subscriptions and Subscription Revenue.
Instructions
(a) Prepare the entry in October for the receipt of the subscriptions.
(b) Prepare the adjusting entry at December 31 2016 to record subscription revenue earned in December 2016.
(c) Prepare the adjusting entry at March 31 2017 to record subscription revenue earned in the first quarter of 2017.

LaCrema Company Publishes a Monthly Decorating Magazine Remodelista