Adjusting Entries for Unearned Revenue

Exercise 6

On November 9, 20x1, Entity G received $1,200 from a subscriber to a magazine issued by the entity. Each issue of the magazine is published and sent to subscribers on the first day of each month. Prepare journal entries on the following dates:

November 9, 20x1

Cash

12,000

   Unearned subscription revenue

12,000

December 1, 20x1

Unearned subscription revenue

1,000

   Subscription revenue

1,000