Dorie Greenspan Publications Publishes a Food and Travel Magazine

question 192

Essay

Dorie Greenspan Publications publishes a food and travel magazine. The magazine sells for $3 a copy on the newsstand. Yearly subscriptions to the magazine cost $24 per year (12 issues). During December 2016 Dorie Greenspan Publications sells 12000 copies of the food and travel magazine at newsstands and receives payment for 20000 subscriptions for 2017. Financial statements are prepared monthly.
Instructions
(a) Prepare the December 2016 journal entries to record the newsstand sales and subscriptions received.
(b) Prepare the necessary adjusting entry on January 31 2015. The January 2017 issue has been mailed to subscribers.

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