RJ Magazines sells two-year magazine subscriptions for $108 cash each.The cost of producing and delivering each monthly magazine is $2.75 paid in cash at the time of delivery.RJ's sales activity for the year follows:
Sales activity
• On January 1,2017,RJ sells 22,000 subscriptions.
• On April 1,2017,RJ sells 5,000 subscriptions.
• On November 1,2017,RJ sells 12,000 subscriptions
RJ delivers the magazines at the end of the month and the year-end is December 31.
Required:
a.Prepare journal entries to record the subscription sales during the year.
b.Prepare summary journal entries to record the revenue earned during the year and the related expense.

Question

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The Answer of RJ Magazines sells two-year magazine subscriptions for $108 cash each.The cost of producing and delivering each monthly magazine is $2.75 paid in cash at the time of delivery.RJ's sales activity for the year follows:
Sales activity
• On January 1,2017,RJ sells 22,000 subscriptions.
• On April 1,2017,RJ sells 5,000 subscriptions.
• On November 1,2017,RJ sells 12,000 subscriptions
RJ delivers the magazines at the end of the month and the year-end is December 31.
Required:
a.Prepare journal entries to record the subscription sales during the year.
b.Prepare summary journal entries to record the revenue earned during the year and the related expense.

RJ Magazines Sells Two-Year Magazine Subscriptions for $108 Cash Each