Celebraty Printings sold annual subscriptions to their magazine for $33000 in December 2015. The magazine is published monthly. The new subscribers received their first magazine in January 2016.
1. What adjusting entry should be made in January if the subscriptions were originally recorded as a liability?
2. What amount will be reported on the January 2016 balance sheet for Unearned Subscription Revenue?

Question

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The Answer of Celebraty Printings sold annual subscriptions to their magazine for $33000 in December 2015. The magazine is published monthly. The new subscribers received their first magazine in January 2016.
1. What adjusting entry should be made in January if the subscriptions were originally recorded as a liability?
2. What amount will be reported on the January 2016 balance sheet for Unearned Subscription Revenue?

Celebraty Printings Sold Annual Subscriptions to Their Magazine for $33000