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Fortune Co. receives $30,000 cash in advance for 4 months of legal services on October 1, 2009, and records it by debiting Cash and crediting Unearned Revenue both for $30,000. It is now December 31, 2009, and Fortune has provided legal services as planned. What adjusting entry should Fortune make to account for the work performed from October 1 through December 31, 2009? Whats the credit and debit?
Warner Co. started a new publication called Contest News. Its subscribers pay $24 to receive 12 issues. With every new subscriber, Warner debits Cash and credits Unearned Subscription Revenue for the amounts received. The company has 100 new subscribers as of July 1, 2009. It sends Contest News to each of these subscribers every month from July through December. Assuming no changes in subscribers, prepare the journal entry that Warner must make as of December 31, 2009, to adjust the Subscription Revenue account and the Unearned Subscription Revenue account.
Whats the credit and the debit
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