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    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
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