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

question 7

Essay

RJ Magazines sells two-year magazine subscriptions for $108 cash each.The cost of producing and delivering each monthly 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.
Required:
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:

Spices

Substances, often derived from plants, used to flavor or color food.

Homeostasis

The self-regulating process by which biological systems maintain stability while adjusting to conditions that are optimal for survival.

Set Point

A concept suggesting that the body regulates its weight and energy levels around a physiologically predetermined point, influencing appetite and metabolism.

Basal Metabolic Rate

The pace at which energy is expended by the body during rest to preserve critical activities such as respiration and temperature regulation.