In December,2011,Quebecor Printing received magazine subscriptions for 2012 from a customer,who paid $500 in cash.What would be the appropriate journal entry for this event?

Question

Quizplus · Accepted Answer

The cash received is for magazine subscriptions for 2012 which means the revenue has not yet been earned. Therefore, it should be recorded as unearned revenue until the magazines are delivered. Hence, the journal entry should be Debit Cash,$500; credit Unearned Revenue,$500.

In December,2011,Quebecor Printing Received Magazine Subscriptions for 2012 from a Customer,who