Sage Hill publishes a monthly music magazine, DiscOver. Subscriptions to the magazine cost $15 per year. During November 2021, Sage Hill sells 12,300 subscriptions beginning with the December issue. Sage Hill prepares financial statements quarterly and recognizes subscription revenue on magazines sold at the end of the quarter. The company uses the accounts Unearned Revenue and Revenue.
1-Prepare the entry to record the receipt of the subscriptions.
2-Prepare the entry to record the adjusting entry at December 31, 2021, to record the revenue to be recognized in December 2021