Sport
Pro Magazine Ltd. sold 12,000 annual subscriptions on August 1, 2011, for $18
each. Prepare Sport Pro’s August 1, 2011 transaction entry and the December 31,
2011 annual adjusting entry.
|
08/01/11
|
Cash .....................................
|
216,000
|
|
|
|
Unearned
Subscription
Revenue (12,000 X $18)...........
|
|
216,000
|
|
|
|
|
|
|
12/31/11
|
Unearned Subscription Revenue.............
|
90,000
|
|
|
|
Subscription
Revenue.................
|
|
90,000
|
|
|
($216,000 X 5/12 = $90,000)
|
|
|
