Ask Question
6 December, 12:10

Advance Payments for Goods The Petaluma Daily Times Corporation (CDT) publishes a daily newspaper. A 52-week subscription sells for $260. Assume that CDT sells 100 subscriptions on January 1. None of the subscriptions are cancelled as of March 31. a. Prepare a journal entry to record the receipt of the subscriptions on January 1. b. Prepare a journal entry to record one week of earned revenue on March 25. Round all answers to the nearest dollar.

+4
Answers (1)
  1. 6 December, 12:12
    0
    The Journal entries are as follows:

    (i) On January 1,

    Cash A/c Dr. 26,000

    To Unearned subscription revenue 26,000

    (To record the receipt of the subscriptions)

    (ii) On March 25,

    Unearned subscription revenue A/c Dr. $500

    To subscription revenue $500

    (To record the one week of earned revenue)

    Working notes:

    subscription revenue for 1 week = 260 * 100 * (1 : 52)

    = $500
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Advance Payments for Goods The Petaluma Daily Times Corporation (CDT) publishes a daily newspaper. A 52-week subscription sells for $260. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers