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Question
Cullumber Company Ltd. publishes a monthly sports magazine, Fishing Preview.
Subscriptions to the magazine cost $15 per year. During November 2017, Cullumber sells 13,840 subscriptions for cash, beginning with the December issue. Cullumber prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end. tabular summary to record the following events.
(a) Receipt of the subscriptions in November.
(b) Adjustment at December 31, 2017, to record subscription revenue in December 2017.
(If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
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