Accounting

posted by .

Horse Country Living publishes a monthly magazine for which a 12-month subscription costs $30. All subscriptions require payment of the full $30 in advance. On August 1, 2008, the balance in the Subscriptions Received in Advance account was $40,500. During the month of August, the company sold 900 yearly subscriptions. After the adjusting entry at the end of August, the balance in the Subscriptions Received in Advance account is $60,000.
Required
1. Prepare the journal entry to record the sale of the 900 yearly subscriptions during the month of August.
2. Prepare the adjusting journal entry on August 31.
3. Assume that the accountant made the correct entry during August to record the sale of the 900 subscriptions but forgot to make the adjusting entry on August 31. Would the net income for August be overstated or understated? Explain your answer.

  • Accounting -

    ????? What do you need?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. algebra 2

    Mildred sold magazine subscriptions with three prices: $22, $18, and $15. She sold 2 fewer of the $22 subscriptions than of the $18 subscriptions and sold a total of 33 subscriptions. If her total sales amounted to $591, how many $15 …
  2. math

    "Mahpee was selling magazine subscriptions. He earned $5 plus $0.50 for each subscription he sold. If Mahpee earned $25, use the equation 25=5 + 0.50n to find the number of subscriptions n he sold." How do I figure this out?
  3. Math

    (a) In 2000 a club has 40 members who each pay $120 annual subscription. What is the total income from subscriptions?
  4. Math algebra

    1) Charlie plans to sell twice as many magazine subscriptions as Patrick. If Charlie and Patrick need to sell at least 100 subscriptions in all, what inequality could be used to determine how many subscriptions, x, Charlie needs to …
  5. Liberal Arts Math

    Marie sells magazine subscriptions. She earns $15 a week plus $3 for each subscription she sells. How many subscriptions must she sell to earn $90 in one week?
  6. 7th grade math

    Not sure how to solve this: Suppose your school is selling magazine subscriptions. Each subscription cost $20. the company pays the school half of the total sales in dollars. The school must also pay a one-time fee of $18. What is …
  7. 7th grade math

    Not sure how to solve this: Suppose your school is selling magazine subscriptions. Each subscription cost $20. the company pays the school half of the total sales in dollars. The school must also pay a one-time fee of $18. What is …
  8. Math

    the eighth grade students are selling magazine subscriptions to raise money for a class trip. they earn $3 for every subscription they sell. so far, they have earned $228 of the $396 needed. how many more subscriptions must the students …
  9. Accounting

    On December 1,2016, AJNB Company commences its operation. The following transactions occured for the month of December 2016. a.) Dec.1 The owner invests 1,000,000 to start the operation of the business b.) Dec.1 Paid rent in advance …
  10. Math

    The 24 students in Mr. Brown's homeroom sold 72 magazines subscriptions. The 28 students in Mrs. Garcia's homeroom SortIt 98 magazine subscriptions. Whose homeroom sold more magazine subscriptions per student?

More Similar Questions