# Review the following transactions and prepare any necessary journal entries for Woodworking Magazine. Woodworking Magazine provides one issue per month to subscribers for a service fee of \$240 per year. Assume January 1 is the first day of operations for this company, and no new customers join during the year. A. On January 1, Woodworking Magazine receives advance cash payment from forty customers for magazine subscription services. Handyman had yet to provide subscription services as of January 1. B. On April 30, Woodworking recognizes subscription revenues earned. C. On October 31, Woodworking recognizes subscription revenues earned. D. On December 31, Woodworking recognizes subscription revenues earned.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 4PB
Textbook Problem
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## Review the following transactions and prepare any necessary journal entries for Woodworking Magazine. Woodworking Magazine provides one issue per month to subscribers for a service fee of \$240 per year. Assume January 1 is the first day of operations for this company, and no new customers join during the year.A. On January 1, Woodworking Magazine receives advance cash payment from forty customers for magazine subscription services. Handyman had yet to provide subscription services as of January 1.B. On April 30, Woodworking recognizes subscription revenues earned.C. On October 31, Woodworking recognizes subscription revenues earned.D. On December 31, Woodworking recognizes subscription revenues earned.

To determine

Concept introduction:

Journal Entry: In journal entry company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To prepare:

Journal Entry In the books of company.

### Explanation of Solution

A. Amount received by the customer of 9600 (240x40) which is debited in the cash account and it is credited in the income received in advance account.

B. When services provided to the customer for the month then income received in advance account is debited by 800 (9600/12) and same is credited in the income account.

C...

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