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Sail Away,a Cruise Industry Magazine,collected $480,000 in Subscription Revenue in May.Each

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Essay

Sail Away,a cruise industry magazine,collected $480,000 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 basis of accounting.Prepare the adjusting entry needed on June 30.(Ignore explanation).Assume the magazine initially records a liability for the subscription revenue.


Definitions:

Vendor

A business or person that sells goods or services.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they match and are correct.

Check Amount

The sum of money written on a check that the drawee is directed to pay.

Book Balance

Book balance refers to the balance of an account according to the accounting records, which may differ from the actual available balance.

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