A company receives $360 for a 12-month trade magazine subscription on August 1.The adjusting entry on December 31 is a debit to Unearned Subscription Revenue,$150,and credit to Subscription Revenue,$150.

Question

Quizplus · Accepted Answer

This is a correct adjusting entry to recognize $150 of the previously unearned subscription revenue as earned revenue for the first 4 months of the 12-month subscription period.

A Company Receives $360 for a 12-Month Trade Magazine Subscription