The following unadjusted account balance was taken from the accounting records at December 31,Year 1:
$\text { Unearned subscription revenue }\quad\quad\$180,000$
A) Prepare any adjusting entries necessary at December 31, Year 1, for each of the transactions that follow:
1. During the year, the company sold 12 -month subscriptions for its flagship magazine. Half of the subscriptions began October 1, Year 1, while the other half began December 1, Year 1 .
2. The company estimates its income taxes to be $ 40 \% $ of its estimated income of $ \$ 500,000 $.

Question

The following unadjusted account balance was taken from the accounting records at December 31,Year 1:
 $\text { Unearned subscription revenue }\quad\quad\$180,000$ 
 A) Prepare any adjusting entries necessary at December 31, Year 1, for each of the transactions that follow:
1. During the year, the company sold 12 -month subscriptions for its flagship magazine. Half of the subscriptions began October 1, Year 1, while the other half began December 1, Year 1 .
2. The company estimates its income taxes to be $ 40 \% $ of its estimated income of $ \$ 500,000 $.

Quizplus · Accepted Answer

The Answer of The following unadjusted account balance was taken from the accounting records at December 31,Year 1:
 $\text { Unearned subscription revenue }\quad\quad\$180,000$ 
 A) Prepare any adjusting entries necessary at December 31, Year 1, for each of the transactions that follow:
1. During the year, the company sold 12 -month subscriptions for its flagship magazine. Half of the subscriptions began October 1, Year 1, while the other half began December 1, Year 1 .
2. The company estimates its income taxes to be $ 40 \% $ of its estimated income of $ \$ 500,000 $.

The Following Unadjusted Account Balance Was Taken from the Accounting Unearned subscription revenue $180,000\text { Unearned subscription revenue }\quad\quad\$180,000 Unearned subscription revenue $180,000

The Following Unadjusted Account Balance Was Taken from the Accounting $\text { Unearned subscription revenue }\quad\quad\$180,000$