A Company Received $5,000 for 100 One-Year Subscriptions on July

question 45

Essay

A company received $5,000 for 100 one-year subscriptions on July 1.The journal entry to record this cash receipt would include a:
A) debit to Unearned revenue.
B) debit to Prepaid expenses.
C) credit to Unearned revenue.
D) credit to Cash.

• A) debit to Unearned revenue.
• B) debit to Prepaid expenses.
• C) credit to Unearned revenue.
• D) credit to Cash.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers and employees, calculated as a percentage of the salaries that employers pay their staff.

FICA Tax

A United States federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

Federal Government

The national government of a federated state, which holds the authority to govern the entire country.

Employee's Payroll

The total amount of wages, salaries, and other earnings paid to employees by a company during a specific period, including deductions for taxes and other withholdings.