the unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine Subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15th of the month. A review of the subscription contracts revealed the following. Subscription Date  No. of Quarterly Subscription  No. of Semi-Annual Subscription  Sep-01 100 100 Oct-01 200 100 Nov-01 300 150 a. Give the adjusting entry on December 31, 2018 b. Set up T accounts for Subscription Income (start with the balance of P390) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determined the adjusted balances that should be presented in the financial statement.

Question

4. the unadjusted trial balance showed on December 31, 2018 Subscription Revenue of P390,000. A magazine Subscription costs P100 monthly and is payable in advance either quarterly or semi-annually. Deliveries are made on or before the 15th of the month. A review of the subscription contracts revealed the following.

Subscription Date  No. of Quarterly Subscription  No. of Semi-Annual Subscription 
Sep-01 100 100
Oct-01 200 100
Nov-01 300 150

a. Give the adjusting entry on December 31, 2018

b. Set up T accounts for Subscription Income (start with the balance of P390) and Unearned Subscription Income (start with zero balance). Post the adjusting entry and determined the adjusted balances that should be presented in the financial statement.

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