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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.

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  1. 6 December, 12:12
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    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
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Home » Business » 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.
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