When a Magazine Company Receives Advance Payment for a Subscription

question 102

Multiple Choice

When a magazine company receives advance payment for a subscription, what is the required journal entry to be recorded?

• A) Cash - Debit; Unearned Subscriptions Revenue - Credit
• B) Prepaid Subscriptions - Debit; Cash - Credit
• C) Cash - Debit; Subscriptions Revenue - Credit
• D) Unearned Subscriptions Revenue - Debit; Cash - Credit

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Definitions:

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A form of psychotherapy aimed at helping couples resolve conflicts, improve their relationship, and foster mutual understanding and communication.

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The action of capturing data or information, often in audio or video format, for playback or analysis.

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A formal event conducted on special occasions, such as rituals, celebrations, or religious ceremonies.

Common Law

A body of legal principles that derive from court decisions, as opposed to statutes or constitutions.