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Question 4BE

Intermediate Accounting (Kieso)
Found in: Page 692

Short Answer

BE13-4 (L01) Sport Pro Magazine sold 12,000 annual subscriptions on August 1, 2017, for $18 each. Prepare Sport Pro’s August 1, 2017, journal entry and the December 31, 2017, annual adjusting entry, assuming the magazines are published and delivered monthly.

The amount of subscription revenue is $90,000.

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Step by Step Solution

Meaning of Subscription

The subscription is the amount of money paid by a subscriber to any entity, institute, or club to remain effective in its membership over the period. It is income for receiving entity.

Journal Entries


Accounts and Explanation

Debit $

Credit $

August 1, 2017



Unearned Subscription Revenue (12,000 x $18)


December 31, 2017

Unearned Subscription Revenue


Subscription Revenue ($216,000 x 5/12)


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