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What entry will the company record on its opening balance

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Question - On 1/1/21 the new controller discovered the following error. On 1/1/2019, the Company received a $300,000 cash payment in advance from a customer for a 3-year data and software subscription service. Revenue should be recognized evenly over the three-year subscription period (2019-2021). However, the previous controller recorded the following journal entry on 1/1/19 in error:

DR Cash 300,000

CR Subscription Revenue 300,000

What entry will the company record on its opening balance sheet of 1/1/21 (if any), and what adjusting journal entry will be recorded on 12/31/21 (if any)? Not all lines are necessarily used. If no JE is required on 1/1/21 or 12/31/21, clearly indicate this by writing "no JE required."

Opening Balance Sheet Journal Entry on 1/1/21:

Adjusting Journal Entry to Record on 12/31/21:

Reference no: EM132895842

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