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Amo0na · May 27, 2012, 03:45 PM

E10-4: Guyer company publishes a monthly sports magazine, Fishing preview. Subscriptions to the magazine cost $20 per year. During November 2011, Guyer sells 12,000 subscriptions beginning with the December issue. Guyer prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts unearned subscriptions and subscription revenue.

Instructions:

1. prepare the entry in November for the receipt of the subscriptions.

2. Prepare the adjusting entry at December 31, 2011, to record subscription revenue earned in December 2011.

3. Prepare the adjusting entry at March 31, 2012, to record subscription revenue earned in the first quarter of 2012.

paraclete · May 27, 2012, 03:49 PM

Originally Posted by Amo0na

Guyer company publishes a monthly sports magazine, Fishing preview. Subscriptions to the magazine cost $20 per year. During November 2011, Guyer sells 12,000 subscriptions beginning with the December issue. Guyer prepares financial statements quarterly and recognizes subscription revenue earned at the end of the quarter. The company uses the accounts unearned subscriptions and subscription revenue.

instructions:

1. prepare the entry in November for the receipt of the subscriptions.

2. Prepare the adjusting entry at December 31, 2011, to record subscription revenue earned in December 2011.

3. Prepare the adjusting entry at March 31, 2012, to record subscription revenue earned in the first quarter of 2012.

You have to show us your attempt to solve the problem we don't provide worked answers or do your home work for you

Was the annual subscription received in cash?

What proportion of the subscription was earned in December?

Amo0na · May 27, 2012, 04:16 PM

Hi,

I tried to solve it but I didn't know how to solve it as well as there is no time because I have to finish my research. Regarding the annual subscription it was received in cash, they didn't mention the proportion in the problem.

paraclete · May 27, 2012, 04:24 PM

Originally Posted by Amo0na

Hi,

I tried to solve it but i didn't know how to solve it as well as there is no time because I have to finish my research. Regarding the annual subscription it was received in cash, they didn't mention the proportion in the problem.

All the facts you need are in the problem, you must learn to read with comprehension otherwise you will never be a competent accountant. If you have something more important to do, then do that

If 12000 subscriptions are received in cash and they have an account called unearned subscriptions what is your entry. Come on now read and think about the problem

If funds are received for a twelve months subscription how much is applicable to one month ?to three months ? This is elementary mathematics

Do your lecturers hand feed you in this manner?

Amo0na · May 27, 2012, 04:28 PM

For three months 60000. Thanks

Amo0na · May 27, 2012, 04:30 PM

Yes, but we solved many problems in the class that what makes me confused

paraclete · May 27, 2012, 04:41 PM

Originally Posted by Amo0na

Yes, but we solved many problems in the class that what makes me confused

One technique we developed was to get a highlighter and mark the important facts and ingore the rest of the narrative

Amo0na · May 27, 2012, 04:51 PM

When I finish I will post my attempt to solve the homework. Thanks a lot for your help :)