Ask Question
8 August, 05:32

During August of 2011 Nickle Publishing received $24,000 for 1-year subscriptions to a new magazine. Magazines are mailed to subscribers each month, starting in September of 2011. What adjusting entry should Nickle make on Dec. 31, 2011?

+4
Answers (1)
  1. 8 August, 08:23
    0
    Debit Unearned/Deferred revenue $8,000

    Credit Sales revenue (p/l) $8,000

    Being entries to recognized earned revenue for the period

    Explanation:

    August of 2011, 1 year subscription of $24,000

    Revenue earned per month = $24,000/12 = $2,000

    Revenue earned (between September and December) = $2,000 * 4

    = $8,000

    To recognize this, adjusting entries required on Dec. 31, 2011

    Debit Unearned/Deferred revenue $8,000

    Credit Sales revenue (p/l) $8,000

    Being entries to recognized earned revenue for the period
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During August of 2011 Nickle Publishing received $24,000 for 1-year subscriptions to a new magazine. Magazines are mailed to subscribers ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers