RJ Magazines Sells Two-Year Magazine Subscriptions for $108 Cash Each

question 3

Essay

RJ Magazines sells two-year magazine subscriptions for $108 cash each.The cost of producing and delivering each magazine is $2.75 paid in cash at the time of delivery.RJ's sales activity for the year follows:
Sales activity
• On January 1,2017,RJ sells 22,000 subscriptions.
• On April 1,2017,RJ sells 5,000 subscriptions.
• On November 1,2017,RJ sells 12,000 subscriptions
RJ delivers the magazines at the end of the month and the year-end is December 31.
Requirements:
a.Prepare journal entries to record the subscription sales during the year.
b.Prepare summary journal entries to record the revenue earned during the year and the related expense.

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Definitions:

Technical Breakthroughs

Significant advancements or innovations in technology that fundamentally change processes, products, or industries.

High-Quality Products

Items that meet or exceed customer expectations in terms of performance, durability, and reliability.

SWOT Analysis

A planning instrument for strategy that recognizes the Strengths, Weaknesses, Opportunities, and Threats connected with business competition or the planning of a project.

Internal Factors

Factors within an organization that can affect its operations and success, including its resources, processes, and organization culture.