The Following Unadjusted Account Balance Was Taken from the Accounting $\text { Unearned subscription revenue }\quad\quad\$180,000$

question 97

Essay

The following unadjusted account balance was taken from the accounting records at December 31,Year 1:
$\text { Unearned subscription revenue }\quad\quad\$180,000$
A) Prepare any adjusting entries necessary at December 31, Year 1, for each of the transactions that follow:
1. During the year, the company sold 12 -month subscriptions for its flagship magazine. Half of the subscriptions began October 1, Year 1, while the other half began December 1, Year 1 .
2. The company estimates its income taxes to be $40 \%$ of its estimated income of $\$ 500,000$ .
B) Prepare the current liabilities section of the balance sheet by listing any current liabilities and the related amounts as a result of the adjustments in Part A.

---

Definitions:

Behavior Therapy

A therapeutic approach that focuses on changing maladaptive behaviors through conditioning techniques and new learning.

Cognitive Therapists

Professionals who treat mental, emotional, and behavioral disorders using techniques designed to change faulty or unhelpful thinking patterns, beliefs, attitudes, and behaviors.

Self-talk

The practice of talking to oneself, often silently, as a method of self-guidance or self-regulation.

Beck's Cognitive Therapy

A form of psychotherapy developed by Aaron Beck that aims to correct negative thinking patterns to improve mood and behavior.