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Question - Marin publishes a monthly sports magazine, Hockey Hits. Subscriptions to the magazine cost $22 per year. During November 2021, Marin sells 18,600 subscriptions beginning with the December issue. Marin prepares financial statements quarterly and recognizes revenue for magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.
Prepare the entry in November for the receipt of the subscriptions.
Prepare the adjusting entry at December 31, 2021, to record revenue to be recognized in December 2021.
Prepare the adjusting entry at March 31, 2022, to record revenue to be recognized in the first quarter of 2022.
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