E10-7 - Homework Solutions PDF

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Chapter 10 E10-7 Cassini Company Ltd. Publishes monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28/year. During November 2017, Cassini sells 6,300 subscriptions for cash, beginning with the December issue. Cassini 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. (a) Prepare the entry in November for the receipt of the subscription November 1. Cash 176,400 Unearned Subscription Revenue 176,400 (b) Prepare the adjusting entry at December 31, 2017, to record subscription revenue in December 2017 December 31. Unearned Subscription Revenue 14,700 Subscription Revenue 14,700 (c) Prepare the adjusting entry at March 31, 2018, to record subscription revenue in the first quarter of 2018 March 31. Unearned Subscription Revenue 44,100 Subscription Revenue 44,100...