Suppose That a Business Sells 6-Month Subscriptions to Its Monthly

question 38

Multiple Choice

Suppose that a business sells 6-month subscriptions to its monthly magazine. On January 1, the company receives a total of $600 for 10 subscriptions. To record this transaction, the company debits "Cash" for $600 and credits "Unearned Subscription Revenue" for $600. As of January 31, the company has provided one month of magazines and has earned one month of revenue. What adjusting entry is necessary at January 31?

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Definitions:

Design Process

A systematic and iterative method used in creating functional products and processes, characterized by phases such as ideation, conceptualization, testing, and refinement.

Design Thinking

An approach to problem-solving that involves empathy, creativity, and rationality to meet user needs and resolve complex issues.

Los Angeles Voting System

A method or machinery used for casting and counting votes in Los Angeles elections.

Use Empathy

The practice of understanding and sharing the feelings of others, often utilized to enhance interpersonal relationships and communication.