Healthy Living, a Diet Magazine, Collected $500,000 in Subscription Revenue

question 59

Essay

Healthy Living, a diet magazine, collected $500,000 in subscription revenue in May. Each subscriber will receive an issue of the magazine for each of the next 12 months, beginning with the June issue. The company uses the accrual method of accounting. Provide the journal entry for collection of cash in May. Assume the magazine initially records a liability for the subscription revenue.

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Definitions:

Criminal Acts

Actions that are in violation of the laws of a jurisdiction and are subject to prosecution and punishment.

Public Report

is a document that is made available to the general public, providing information on a specific topic or event.

Authorities

Individuals or groups that hold power within a social structure, responsible for the enforcement of laws, rules, and regulations, and maintaining social order.

Significant Activity

Refers to actions or pursuits that have a notable impact or importance in a certain context, such as personal development, societal progress, or environmental sustainability.