Question

For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a Magnificent Magazines received $13,200 on December 31, 2018, for subscription services related to magazines that will be published and distributed in January through December 2019 b. Walker Window Washing paid $1,320 cash for supplies on December 31, 2018. As of January 31, 2019, $220 of these supplies had been used up c Indoor Raceway received $3,300 on December 31, 2018, from race participants for providing services for three races. One race is held in January 31, 2019, and the other two will be held in March 2019. View transaction list Journal entry worksheet 2 3 4 5 6 Record the receipt of $13,200 on December 31, 2018, for subscription services related to magazines that will be published and distributed from January through December 2019 Prey 1 of 7 Next >

Answer 1

No	Date	General Journal	Debit	Credit
1	Dec-31	Cash	13200
		Unearned subscription revenue		13200
2	Jan-31	Unearned subscription revenue (13200/12)	1100
		Subscription revenue		1100
3	Dec-31	Supplies	1320
		Cash		1320
4	Jan-31	Supplies expense	220
		Supplies		220
5	Dec-31	Cash	3300
		Unearned service revenue		3300
6	Jan-31	Unearned service revenue (3300/3)	1100
		Service revenue		1100