New York Enterprises provides advertising services to travel agencies.The company bills annually and receives payments in advance.All advertising is earned equally each month.In January,the company received $120,000; in February,it received $144,000.The fiscal year ends on February 28.
Required:
1.How much revenue should be recognized from these contracts on February 28?
2.What adjusting entry will be required on February 28?

Question

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The Answer of New York Enterprises provides advertising services to travel agencies.The company bills annually and receives payments in advance.All advertising is earned equally each month.In January,the company received $120,000; in February,it received $144,000.The fiscal year ends on February 28.
Required:
1.How much revenue should be recognized from these contracts on February 28?
2.What adjusting entry will be required on February 28?

New York Enterprises Provides Advertising Services to Travel Agencies