Ask Experts Questions for FREE Help !
Ask
    littleblackstar's Avatar
    littleblackstar Posts: 4, Reputation: 1
    New Member
     
    #1

    Aug 4, 2012, 06:36 AM
    Unearned subscription income
    The unadjusted trial balance showed on December 31, 2011 Subscription Revenue of P390,000. A magazine subscription costs P100 monthly and is payable in advance either quarterly or semi annually. Deliveries are made on or before the 15th of the month. A review of the subscription contracts revealed the ff:

    September 1
    No of quarterly subscriptions: 100
    No. of semi annual: 100

    October 1
    No of quarterly subscriptions: 200
    No. of semi annual: 100

    November 1
    No of quarterly subscriptions: 300
    No. of semi annual: 150

    Give the adjusting entry on December 31,2011

    *haven't figured out any solution yet.
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
     
    #2

    Aug 4, 2012, 07:05 PM
    This is not difficult, have a go, it is simple maths a % of This, a % of That and no half baked calculations this time
    One assumes that all of December's sales are accrued income

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How do I file federal and state income tax for "unearned" income? [ 1 Answers ]

The income's source is capital gain (or loss, depending on pending paperwork) and interest earned - both of them in foreign country. (His income for the year could in fact be "negative") The person is Ohio resident and US citizen. What form(s) does he need to file? Can he use the same form to file...

Account for unearned income. [ 3 Answers ]

The TJ Company collects all service revenue in advance. The company showed a $12,500 liability on its December 31, 2011 balance sheet for unearned service. During 2012, customers paid $50,000 for future services, and the income statement for the year ended December 31, 2012 reported service...

Do I have to declare my child's unearned income (no W-2)? [ 5 Answers ]

My daughter does a lot of pet sitting and babysitting. She received $1,025 in 2009. Someone told me a child does not have to pay taxes unless they earn at least $2,000. True?

Unearned Income jornal entry question [ 3 Answers ]

In a journal entry for a company that has contracted for services and paid a partial amount for such services how would the journal entry be entered. I thought it would be as Cash - Debit, Unearned Income - Debit, Account Receivable - Credit. For example: If the contract is for 3 months at...

Unearned vs. Earned income and impact on SS benefits [ 6 Answers ]

I want to try to retire in about 6 years at age 64. I am married and my wife will continue to work (for a number of years) as a school teacher after I retire. I will have access to a company pension from a work location where I paid social security taxes on my income. I will also have 401k...


View more questions Search