Healthy Living,a diet magazine,collected $500,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.Provide the journal entry for collection of cash in May.(Ignore explanation).
Assume the magazine initially records a liability for the subscription revenue.

Question

Quizplus · Accepted Answer

The Answer of Healthy Living,a diet magazine,collected $500,000 in subscription revenue in May.Each subscriber will receive an issue of the magazine for each of the next 12 months,beginning with the June issue.The company uses the accrual method of accounting.Provide the journal entry for collection of cash in May.(Ignore explanation).
Assume the magazine initially records a liability for the subscription revenue.

Healthy Living,a Diet Magazine,collected $500,000 in Subscription Revenue in May